The Application Of Research On China's Foreign Exchange Reserves

Foreign exchange reserves is the important part of international reserves ,what can be using to finance the deficit of international balance of payment, to intervent foreign exchange market, to maintain the stable exchange rate of domestic currency, to provide the debt assurance of borrowing and repaying debt, etc. Now China become the biggest country having foreign exchange reserves in the world. But holding large foreign exchange reserves have certain of the prifice, reserves will also bring inflationary pressures, make domestic currency facing appreciation pressure, make the autonomy of central bank monetary policy restricted, produce adverse effect to the readjustment of industrial structure, etc.China'international imbalance of payment, the RMB exchange rate system and the foreign exchange reserves management system, RMB appreciation ,those factors made Chinese foreign exchange reserves continue rapidly growth. The large foreign exchange reserves will give the national economy brings many extra burden, will produce many unfavorable impacts, waste of resources, etc. Between China's foreign exchange reserves and moderate scale have big gap. For the part of foreign exchange reserves, how to use and manage? we can consider more profitable. But now, most China's foreign exchange reserves is used to buying American bonds which the profits are very low. In China, how to use and manage the excess reserves in the background, from the rational scale, excess reserves exist positive and impositive effects, the article based on the historical development of China's foreign exchange reserves, analyses the actual reason in China, suggest the reasonable application, reduce national exchange waste of resources and inefficient, in order to get the best results.