Candice Zachariahs , April 6, 2010

April 6 (Bloomberg) - April 6 (Bloomberg) -- China’s foreign exchange reserves face a “triple whammy” as a decline in the U.S. dollar and Treasuries and possible inflation in the longer run erode the value of its savings, said Yu Yongding, a former adviser to the People’s Bank of China, in an opinion piece for The Australian Financial Review today. “There is no question whatsoever that the U.S. dollar will go south in the long run,” he wrote. “Unless the U.S. economy improves its trade balance, the dollar will fall. But the U.S. cannot improve its trade balance unless the dollar falls.”