The Legal System Of Foreign Exchange Balance

China's foreign exchange reserves in 2009 exceeded two trillion U.S. dollars mark and the absolute value of foreign exchange reserves are still increasing. In contrast with the huge foreign exchange reserves that China's legal system on foreign exchange reserves almost all regulation only provides some simple principles, such as sovereign wealth funds in such institutions, the basic free in our current financial regulatory regime. In this context, the author from the traditional concept of foreign exchange balance, safety and efficiency that should be under a unified goal to break even, in the specific operation, through the capital account opening and sovereign wealth funds to run the Legal System achieved. This paper mainly discussed the following aspects:First of all, introduced the background of writing this article, in our country's foreign exchange reserves had reached the sum of the seven countries of Western industrial cases, the numbers are rising, foreign exchange reserves has been brought to our country, such as negative factors, including the risk of depreciation. As a background to explore the foreign exchange balance the urgency of the legal system. Second, the research capital and foreign exchange balance between openings up. There is no foreign exchange income and expenditure to achieve a balanced state, a very important aspect of more stringent capital project management; large capital inflows are less domestic outflow there is a huge surplus of capital projects. At the same time the IMF and the WTO rules on the international role in promoting the opening of the capital, international and domestic factors combine to make the capital we need to do something the legal system. Concrete steps should be combined with China's national conditions, make the risk smaller projects first open and legislative attention in coordination with the international rules, taking into account the capital and financial services liberalization and opening up there is a certain overlap area.Furthermore, the Financial Law importance and benefits of capital mobility, to explore the foreign exchange balance, can not but consider how the legal system in the capital to run our country's foreign exchange reserves to achieve profitability and liquidity. Sovereign wealth funds is a good solution, but at present China's sovereign wealth funds still exist, such as low transparency, easy to countries not to invest in such issues, which we need from the perspective of international law and domestic law, be considered Finally, through international and supervision of the domestic level, sovereign wealth funds could eventually make a good run. Finally, the article discusses the ultimate goal of foreign exchange balance safety and efficiency of unity. Security at the macro level refers to the national economic sovereignty, at the micro level refers to the financial security, and general legal system of foreign exchange management is to protect these two points. Efficiency mainly refers to the mobility of capital and profitability, has passed the ultimate goal of financial regulatory law is to promote the country's financial development, Foreign Exchange Management Act is also to promote on the basis of foreign exchange reserves in a safe return to play its role. Therefore, the establishment of the legal system of foreign exchange management to fully sort out when the relationship between safety and efficiency, security is the basis, efficiency is the goal; Foreign Exchange Management Act's ultimate goal is safety and efficiency of unity.