Research On Perfecting The Positive Management Of China's Foreign Exchange Reserve

As an important part of a country's wealth, foreign exchange reserve's function has expanded from meeting the need of a country's imports, paying off debt and intervening foreign exchange rate, which is the traditional function of foreign exchange reserve, to "keeping confidence" and creating wealth. The expansion of foreign exchange reserve's function has objectively required that foreign exchange reserve management should also make corresponding changes. At present, more and more countries becoming to adopt the approach that separating foreign exchange reserve into different levels according to the three functions and managing foreign exchange reserve positively. As the foreign exchange reserve management changes, the objectives of foreign exchange reserve in different countries have gradually transformed from the emphasis on safety, liquidity, into the safety, liquidity and profitability which are of same importance. This is an important difference between the traditional foreign exchange reserve management and positive foreign exchange reserve management. This article first show the necessity of the change from traditional foreign exchange reserve management to positive foreign exchange reserve management due to the change of foreign exchange reserve's function and the comparison between traditional foreign exchange reserve management and positive foreign exchange reserve management at objectives, features and so on; then through the analysis of China's foreign exchange reserves, such as too large scale, single component, and flaws of the current foreign exchange reserve management system, it reveals the necessity of perfecting China's foreign exchange reserves management; and then based on the classification of the positive foreign reserves management system, it introduces the positive foreign exchange management experience of Singapore, Norway, South Korea, the United States, Japan, the European Union and other countries (regions), and gets down to the enlightenment of perfecting China's positive foreign exchange reserves; Finally, through the analysis of China's foreign exchange reserve management current situation, combined with the inspiration from foreign advanced management experience, we get down to the measures and recommendations to perfect China's positive foreign exchange reserve management at the aspects of the scale management, structure management and the foreign exchange reserve management system.