For years most countries used the dollar as the major currency in its foreign currency reserves, but after the economic changes through the years countries started to shift their assets to more of diversified portfolios.

The rising demand for the Chinese goods all over the world raised economists expectations that China’s GDP growth could be over 10% this year. It seems that China’s has concerns about the increasing inflation and more boosts in the manufacturing sector would expose its economy to the threat of soaring prices.

China has begun to suffer from the problem that there is too much demand for its manufactured goods. The New York Times reports that there is a major shortage of workers for factories in the People’s Republic.

Chinese data released Thursday showed rapid lending and accelerating inflation, particularly in the property sector. The News was near the middle of a range expected in analysts’ forecasts.

The Reserve Bank of Australia surprised markets Tuesday by holding its policy rate unchanged at 3.75% after a string of increases at its previous three meetings. The decision is considered being a pause in the tightening cycle, with the bank taking a breather to gauge the impact of the 75 basis points in total tightening from October to December of 2009

In spite of, power outages and weather-related disruptions and inflationary pressures; China’s manufacturing activity was able to expand in January, sustaining the momentum of its near year-long rebound.

China’s GDP grew 10.7% in the fourth quarter, a figure that the economies in Japan, the US, and Europe will never see again. Comparing the Chinese growth rates to the rest of the economies in the world strange thoughts would rise in any economist mind.

Without many major economic data on the calendar, the dollar advanced on the Australian dollar and other high-yielding currencies Tuesday but turned lower against the euro, after the People’s Bank of China said it would require banks to hold more cash in reserve as it attempts to restrain credit growth.

China’s exports increased at an unexpectly rapid pace, up 18% in December compared to the same month in 2008. One economist told Reuters that the data mean that China’s GDP rose 11% in the last quarter of 2009 and that factory production was probably up 25% in December.

Today the economic calendar has witnessed some remarkable Chinese indicators which insured the recovery of the Chinese economy and the effectiveness of its $585 billion stimulus package. The nation released nine key economic data for November.