China's foreign exchange reserves are expected to hit one trillion US dollars by September or October thus year, Forbes reported,citing the official Securities Times. Foreign exchange reserves are growing at a pace of 20 billion US dollars per month with foreign investment and trade surpluses increasing, Fan Gang, a member of the monetary policy committee of the People's Bank of China was quoted as saying. Fan said with the current foreign exchange rate mechanism, it is advisable to take small reform steps, with a dramatic appreciation in the yuan not desirable.