Chinese Proposals on Foreign Exchange Reserves and Municipal Debt

People's Bank of China Gov. Zhou Xiaochuan presented proposals April 17 regarding two of China's financial problems. First, he proposed that investments using China's vast foreign exchange reserves should be accelerated and further diversified. Second, he proposed the issuance of municipal bonds to finance internal development, something that is currently prohibited. Neither idea is new, but both are part of ongoing debates about the country's major financial challenges.