Study On The Structure Selectivity Of China's Foreign Reserves

International reserves has been playing an important role on manifesting the strength of a country's wealth, balancing international payments, maintaining stability exchange rate and enhancing country's international reputation as well as competitiveness. With the rapid development of China's economy in recent years, China's international reserves has grown a lot annually, and foreign exchange reserves has been increasing with the amount of over one hundred billion U.S. dollars annually. In February 2006, China has surpassed Japan to become the world's largest foreign exchange reserves of the country. And at the end of 2010, China's foreign currency reserves have risen to$ 2,847,338,000,000. There are ever not countries except China experience such a high growth rate and the huge amount of foreign exchange reserves. Of course, it's good result of China's rapid economic growth as well as economic strength gradually. However, questions also come to us when we're facing to the unexpected amount that whether such a high foreign exchange reserves will do good to China's future economics, whether the amount is appropriate. If the answer is not, then what is the ideal scale of China's international reverses? How is the gap between the realistic scale and the ideal one? How to optimize the current reserves? The answers to these questions, not only mean a lot to myself, but also help the government theoretically and practically to take advantage of China's international reserves efficiently and balance the development of domestic and international economy.This paper is divided into four parts. The first part reviews the theoretical background and summary of the article's framework and methodology to do a brief introduction. The second part of the theory introduced to regulate foreign exchange reserves combined with a rational meaning of guidance, details of foreign exchange structured very choice theory, structural optimization of this paper the theoretical basis of foreign exchange reserves. After the international foreign exchange reserves through foreign exchange reserves of developing countries in particular, the structure analysis of the status structure, summed up the choice of foreign exchange reserves, principles and structure factors for the fourth chapter of the empirical foundation. The third part introduces China's current reserve position; analyze the characteristics of China's foreign exchange reserves as well as the problem, according to the present problem to find out the real causes. According to the second part of the theoretical analysis and practical analysis of the third part, it sums up the fourth part of the optimization direction. In this fourth part, to the second part and third part is based on empirical analysis of China's current economic conditions, currency foreign exchange reserves should be held most appropriate weights, empirical analysis of the results by comparison, made in China's foreign exchange reserves ways and means to optimize the structure of the monetary authorities have important practical significance.