The Optimal Composition Analysis Of Chinese International Reserves

China's international reserves grew rapidly and ranked No.1 in the world since February 2006, which made great contribution to the development of Chinese economy. But meanwhile also bring great negative influence to our economy, and now dollar has depreciated a lot, Chinese single reserve structure make our international reserves face great exchange risk.Gold reserve is always low percentage in international reserves. Gold has better value function, which causes many governments regard gold reserves as important. How optimize the structure management of international reserves is studied in this paper.The purpose of this paper is optimize composition of China's international reserves. This paper takes asset portfolio by Harry Markowitz as a basic theoretical analysis framework, also considering foreign trade and external debt need. Besides foreign-exchange reserve, this paper also studies gold reserve, which is the creation of the paper. And get the empirical result by LINGO 9.0. The empirical result showed:(1)the weight of dollar is more than 60%,which means dollar can not be insteaded by other currencies recently. But we should lower the percentage of dollar in international reserve, compared to the percentage it should; (2) we should higher the weight of the euro, because of foreign trade and foreign debt need. (3)Japan is a powerful economic partner; we should also higher the percentage of yen. (4) Pound was the only reserve currency, and is very strong to RMB. So we should has more pound, too. (5) the weight of gold reserve is about 8%, which is large different from 1.9%, which means we should higher the percentage of gold reserves a lot.