The Study On The Structural Management Of China's Foreign Exchange Reserve

International reserves is a country's monetary authorities for the balance of international payments and maintain the national currency's stability and for emergency international payments and generally acceptable to States held all the assets. It can cover the balance of payments deficit; maintain the stability of the national currency exchange rate and as a government guarantee of foreign borrowing.Foreign Exchange Reserves refers to foreign convertible currency deposits master by a State official and other realizable financial assets. Since the disintegration of the Bayton Forest System, the reserve currency into U.S. dollars from a single U.S. dollar, Japanese yen, euro, sterling and other reserve currency at the same time coexist, but the dollar is still the most important reserve currency.The number of foreign exchange reserve management, including foreign exchange reserve management, structure management. Foreign exchange reserve structure management, with the evolution of the international monetary system continues to develop, and gradually become an important foreign exchange reserves management. The structure of the management of foreign exchange reserves, the three principles of safety, liquidity and profitability.Foreign exchange reserve accumulation of China has risen dramatically in recent years; the scale is accumulated to 1,900 billion dollars up to the end of September,2008, exceeding the size of the seven major western industrial countries'. But the ratio of the U.S. dollar placed in foreign exchange reserve of China is 60%. Too much focus on the currency structure of the U.S. dollar's decline continued under a vast reservoir of exchange rate risk. Therefore, to adjust foreign exchange reserve structure and enhance its running efficiency have become the significant research subjects in the reform of foreign exchange reserve management system.In this paper, foreign exchange reserve structure as the object of study. We first analyze the Currency structure and Asset structure then come out with the overall estimation of the currency composition in China. In the Currency structure, this reference currency structure of Markowitz Portfolio Selection Theory, combining constrains of the composition of international trade, foreign direct investment, external debt, economic strength and the currency's status in the international monetary system. This framework is used to estimate the optimal currency share in our countries'foreign exchange reserves. In the Asset structure, the assay according to foreign exchange reserve's assets allocation principles, advising how to optimize the allocation of bond-type assets, gold and non-financial assets. It can bears positive significance to enhancing the assets yield of foreign exchange reserve.In chapter one, as an introduction, significance and the methods of this paper are described.In chapter two, this paper introduces foreign exchange reserve management, content and foreign advanced management experience. Refers to a country's foreign exchange reserves management is to ensure that their public sector ownership of foreign assets can readily obtain, and to achieve its objectives.In chapter three, this paper describes the status of China's foreign exchange reserves structure.In chapter four, Combining model with assets, this paper construct the proportion of China's foreign exchange reserves in the currency.In chapter five, a study on the configuration of the structure of China's foreign currency reserve assets. First of all, China's foreign exchange reserve assets gradually invest in treasury bonds, agency bonds, corporate bonds and blue chip. Then, In order to increase revenue in reserve assets, we can invert foreign exchange reserves into gold reserves and Non-financial assets.Finally, the conclusions of this paper.