The Research Of Japan's Foreign Exchange Reserves

Foreign exchange reserve is of great importance for the monetary authorities and it is a guarantee to melt the deficits of balance of payment,interfere with the foreign exchange market so as to maintain the stability of the local currency and a credit backup to borrow and repay the foreign debts. Too much or too little foreign exchange reserve is not good for the economy growth sustained, stable and healthy. Too much foreign exchange reserves will waste foreign exchange resource, increase costs, and cause inflation and appreciation of RMB, but too little foreign exchange reserve will distort the distribution of the resource, and expose international trade and financial activity at risk.Since the 1990s, Japan's foreign exchange reserves were the top first in the world for many years, although after 2006, Japan ranks the second t years after China. By the end of 2010, Japan's foreign currency reserves are as high as 1049 billion dollars, much far higher than those countries with the same development level as Japan. Too much foreign currency reserves has affected the Japanese economy operation and foreign economic and trade relations in a certain extent. There are many similarities in the origin, purpose and use of foreign currency reserves between the Chinese and Japanese, but serious problems did not happen in Japan. Around Japan's foreign exchange reserves, this paper analyzed and discussed the foreign the generation and development of exchange reserves management system, the scale and structure of foreign exchange reserves management was studied. Then this paper discusses the effect of formation and utilization of foreign exchange reserves of Japan with use of effect in both theoretical and empirical analysis, probes into the possible future policy choices of Japanese foreign currency reserves management. And through the research of the management of the Japanese foreign exchange reserves, it can provide corresponding policy recommendations for Chinese foreign exchange reserves management reform, to resolve the problem of Chinese foreign exchange reserves. Firstly, this paper introduces the formation, development as well as the laws of foreign exchange reserves, analyzes the foreign management present situation from the perspective of system. Overall, there are several same characteristics of the foreign exchange reserves management, such as the goal of exchange reserves management in order to maintain the stable exchange rate, foreign exchange reserves of composition in primarily, long-term stable often payments surplus of Japan's foreign exchange growth based, etc. Then, this paper discussed the history and current situation of the Japaneseforeign exchange reserves scale and structure, analyze the Japanese foreign exchange reserves scale and structure in theory and empirical analysis two aspects, made clear the reasons of the formation of Japan's foreign exchange reserves of foreign exchange reserves, and Japan application effect.Finally, through the above study of the foreign currency reserves management system and the scale and structure of foreign exchange reserves, this paper discusses the several possible foreign exchange reserves management policy options Japanese government may take under the current circumstances. On the basis of economic development, the similarity of foreign exchange reserves between China and Japan, and combining with China's foreign exchange reserves development status, put forward corresponding policy recommendations for the reform of foreign exchange reserves management to our country.