| The foreign exchange reserve of China has been increasing rapidly in the recent years, andat the end of 2005 it has amounted to $881.872 billion, only $30 billion less than that of Japanwhich has the largest scale of foreign exchange reserve in the world. Is such large scale offoreign exchange reserve moderate to our country's economic development? What effect does itcan make on China's economy? In the meantime, as one of the most important macroeconomicvariable, foreign exchange reserve reflects one country's economic and financial strength, and itmakes great effect on the adjustment of balance of one country's international payment,maintaining stabilization of currency exchange rate, defending one country's internationalprestige and other aspects which cannot be neglected, especially under the current background ofeconomic integration, foreign exchange reserve acts more and more important role in protectingone country's economic and financial security. On the consideration of the above two aspects, thearticle has conducted the research on the moderate scale and management of our country'sforeign exchange reserve. Based of objective evaluation and reference from the predecessor, thearticle makes innovation on the model which is used to study the moderate scale of China'sforeign exchange reserve, and the conclusion is that the scale of our country's foreign exchangereserve at present is more than the moderate one. On the empirical analysis, the article discussesthe positive and negative effect that excessive foreign exchange reserve brings on thedevelopment of China's economy. In the view of the current foreign exchange reserve scale beingmuch larger than the moderate one, the article suggests some practical and feasible policies onthe scale and structure management of foreign exchange reserve. And the author proposes someown tentative plans and ideas on the currency types and the classification and management ofproperty in the structure management. |
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