The Research Of The Size And The Structure Of China's Foreign Exchange Reserve

China is integrating as an important player in the international economy with its progress of reforms and open market economic policies, and with the rapid development of the word trade and economic integration. China succeeded in the reform of foreign exchange management system in 1994, and then began to carry out the single, managerial, floating foreign exchange rate. It realized the convertibility of current account in 1996, while the amount of foreign exchange reserve continuously keeps increasing. It amounted to USD$1.4 trillion in 2007. Beyond the continuous increase in the foreign exchange reserve, the management policies on the foreign exchange reserve not only affect the efficiency of using the foreign exchange management system. The management on the foreign exchange reserve draws a lot of attention of government and scholars and substantial amount of research has been done on this.There are four parts in this paper. The first chapter discusses the theories of foreign exchange reserves and relative theories. In this chapter, the writer mainly introduces some definitions of foreign exchange and theories to scale management and structure management of foreign exchange reserves. The second chapter introduces some advanced management experiences at foreign exchange reserve management of some countries; and also tells some lessons of some countries. In the third chapter, it gives experience analysis on scale management and structure management of our foreign exchange reserves. In this chapter the writer testifies his standpoints by setting mathematics model. In the fourth chapter, the auther gives some strategies on scale management and structure management, by combining the actual circumstance of our foreign exchange reserves management, the author gives suggestions on every problem that exists in our foreign exchange reserves management.The management of the foreign exchange reserve includes two parts: the size and the structure of the foreign exchange reserve. This purpose of this paper is to research the foreign exchange reserve management. The models to measure the amount and structure of China's foreign exchange reserve are constructed on the basic of the systematic research theories, considering the reality of China. It also makes some suggestions on China's foreign exchange reserve for the policy makers.