The Study On The Moderate Scale Of Chinese Foreign Exchange Reserves

In recent years, the scale of Chinese foreign exchange reserves increases largely. In February2006, the scale reached on8536.72billion dollars and surpassed that of Japan and ranked first in the world. Since then, the scale of Chinese foreign exchange reserves has occurred historic change. At the end of2012, the scale was high up to33049.71billion dollars.Among all kinds of reserve assets, the foreign exchange reserves have the highest mobility because of flexibility and convenience. The absolute magnitude and proportion of foreign exchange reserves in international reserves are increasing gradually. But the enormous scale of foreign exchange reserves also brings a rigorous challenge to the management.China is confronted with holding a huge amount of foreign exchange reserves which is in the risk of shrinking, and the determination of the moderate scale is critical. The moderate scale of foreign exchange reserves naturally draws much attention and becomes the focus in academy field. Determining the moderate scale is very important to the management of foreign exchange reserves.The thesis concludes the development of the moderate scale of foreign exchange reserves theories. Then, based on the introduction of recent research of this field in domestic and foreign studies, the thesis analyses the moderate scale of Chinese foreign exchange reserves using the utility maximum model. At last, from the perspective of the scale management the thesis puts forward suggestions of the measurement of the foreign exchange reserves.