| Foreign exchange reserve means one currency that is available to exchange hold by one country's currency authorities, can used for paying, making up international deficit and maintaining exchange rate of native currency. The foreign exchange reserve that our country and other countries usually use in the international trade and the international paying mainly are USD, euro, yen, pound etc. In recent years, the foreign exchange reserve in our country presents a fast growth, the scale extends continuously, breaking USD 400,000,000,000 in 2003, breaking USD 600,000,000,000 in 2004, breaking USD 800,000,000,000 in 2005, breaking USD 1,000,000,000,000 more in 2006, attaining USD 1,066,300,000,000.Our country becomes the country owning biggest foreign exchange reserve in the world.Combining the Marx's theory and the modern scholar's thsis to study the influence of our country's foreign exchange reserve to our country's economic,which is good for us to make better use of our country's foreign exchange reserve.The growth of foreign exchange reserve experienced a long process that the foreign exchange reserve from nothing to a few, from a few to the situation of increasing quickly. The trade surplus of the current account and the capital clean inflow of the capital account play an important role in this process, which are main reasons in the fast growth of foreign exchange reserve in our country. In the 26 years of reform and open to world, the growth process of our country foreign exchange reserve is mostly divided into four stages:1. The stage of very small scale (80's in 20 centuries).In this stage, China is poverty, and short in funds, particularly in foreign exchange funds;2.The stage of exceeding 10 billion foreign exchange reserve (1990-1995).In this stage, the foreign exchange reserve in our country presented a fast and stable growth, and is second in the world only behind of Japan;3. The stage of exceeding 100 billion Foreign exchange reserve (1996-2005).In 1996, our country's foreign exchange reserves break USD 100 billion for the first time. In 2005, the foreign exchange reserve breaks 800 billion;4.The stage of exceeding trillion foreign exchange reserve (2006-up to now).Up to February,2006, our country's foreign exchange reserve increased USD 853,600 million exceeding Japan to become the country that hold the most foreign exchange reserve in the world. Up to the end of October, 2006, Chinese foreign exchange reserve have already broken a trillion USD, attaining USD 1,009,626 million. To the end of December, 2006, foreign exchange reserve is USD 1,066,300 million.However, the fast growth of our country's foreign exchange reserve attributes to the rapid and continuous development of economy, national economic power, international competition ability and the ability of attracting foreign investment. The first is the continuous increase of export, international trade keeps on having surplus; The second is directly invest from foreign company that urge our country foreign exchange reserve to increase quickly and continuously; the end the expect of reminding appreciation play a role of pushing our country's foreign exchange reserve to grow rapidly.Our country is a developing country owning a huge and ample foreign exchange reserve, can raise our country's ability of international paying, extend the effects of our country's government and enterprise in the international economic business, and strengthen the confidence and the expectation of other countries to the development of Chinese economy, termini's value. In the meantime, the foreign exchange reserve keeps increasing, which enhanced further our government's ability of dealing with international abrupt affairs, guarding against and dissolving international financial risk, maintaining a national economy safety and is advantageous to our country in playing an important role on the international financial market. To describe in detail:1. The rapid growth of foreign exchange reserve expresses the improvement of the country's economic position and national power. At the same time ,the rapid growth also strengthen the confidence of home and abroad to Chinese economic expectation;2. It is advantageous to our country to guard against the exterior financial risk, resist a strong impact of international speculation capital;3. It is advantageous to our country to weaken the risk of the currency's wrong match and impact of local money market, increase the independence of national monetary policy;4. It is advantageous to the reform of the exchange rates system of renminbi and the formation of market mechanism of the renminbi's exchange rates;5. It is advantageous to exchange renminbi freely. Exchanging renminbi freely is the initial target of our country's foreign exchange system reform. Regardless of analysis from renminbi's development regulation, or from the investigation of trend of Chinese economic and financial development, renminbi's will attain to internationalize and in the end realize to exchange freely;6. The rapid growth of foreign exchange reserve develops an important function to extend needs, promote employments and improve economy;7.The rapid growth of foreign exchange reserve make the foreign exchanges amount of residents personal loosen again, and realize personal amount of foreign exchanges in a year to raise from USD 20,000 to USD 50,000. Our country's residents'personal amount of using foreign exchanges is improving to the direction of convenience and limitless on the foundation of true demand gradually, which satisfied residents' personal need to the foreign economic affairs and activities.The rapid growth of foreign exchange reserve is a "double blade sword", which bring positive influence on our country's economy, in the meantime, also bring much negative influence to our country's economic.1. There is cost to hold the foreign exchange reserve. Foreign exchange reserve assets have to be enough mobile, which is sure of exercising function of foreign exchange reserve everyday. However, the enough liquidity usually with the lower earnings request for price;2. The rapid growth of foreign exchange reserve will increase the difficulty and risk on managing assets. Because the rate of foreign exchange is fluctuating constantly, the asset is easy suffering the risk of exchange rate, which causes loss of the account;3. Because of the incensement of foreign exchange reserve, the supply of renminbi will increase, which will bring the pressure on inflation to our country;4. The rapid growth of foreign exchange reserve also will bring the pressure of renminbi's appreciation to our country, the result of renminbi's appreciation is the improvement of local merchandise's price in international market, which will affect to competition ability of our country's exportation, and cause to decrease on export, in the meantime, the appreciation will make importation increase, make the current account surplus of our country reduce; In fact, how much foreign exchange reserve is suitable for a country to hold, which just don't have standard currently in the theories and the practice. Different country has different standard to adjust. According to the now situation of our country, although our country's foreign exchange reserve already exceed trillion, which can't explain our country foreign exchange reserve has already exceeded appropriate scale. Because the scale of our country's foreign exchange reserve has already can't been measured by the western traditional theories, and the standard of measuring the scale of our country's foreign exchange reserve should be our country's economy growth circumstance. The fact proves the our country's economy remains growing in recent years, so there is no reason to consider our country's foreign exchange reserve as excessive, and there is no reason to consider the rapid growth of our country's foreign exchange reserve will bring more negative influences than positive influences to our country as well.As far as a developing country like our country concerned, the foreign exchange reserve plays an important role. By the analysis of positive influences and negative influences which are brought by the rapid growth of foreign exchange reserve, the growth of our country's foreign exchange reserve is advantageous to our country's economic development, and its benefits are more than weakness to our country's economy. |
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