Research On The Legal System Of My Country’s Foreign Exchange Reserve Operation And Management

As of December 31,2020,total foreign exchange reserves in China exceeded US$3.216,522 trillion,ranking first in the world for many years in a row.Adequate foreign exchange reserves play an important role in the process of national economic development.Adequate foreign exchange reserves are also an important indicator to measure the financial strength of a country.Foreign exchange reserves can effectively adjust the balance of international payments,and maintain the stability of the domestic exchange rate,and is also a strong cornerstone of preventing domestic and foreign financial risks.But the more and more types of foreign exchange reserves,the better.The high amount of foreign exchange reserves will also bring some challenges to the social and economic development,such as the high risk of US dollar exchange rate,the pressure of RMB appreciation,the reduction of the independence of the central bank’s monetary policy,the increase of the cost of foreign exchange reserves and the risk of foreign exchange reserves.At present,there are some problems in the management of foreign exchange reserves in China,such as the lack of special foreign exchange reserve management law,the conflict between the existing effective foreign exchange reserve regulations and normative documents,and the imperfect foreign exchange reserve supervision system.How to effectively realize the operation and management of China’s foreign exchange reserves under the escort of a sound legal safeguard mechanism,so as to obtain sustainable,steady and objective investment returns,and better ensure the stability and appreciation of China’s foreign exchange reserves,is a major problem that must be solved in the management of China’s foreign exchange reserves.Therefore,an in-depth study on the legal system of China’s foreign exchange reserve management is of great guiding significance and practical value to effectively resolve the main problems existing in China’s foreign exchange reserve at the present stage.From the first part of this paper introduces an overview of the management of foreign exchange reserve management,this paper introduces the concept of foreign exchange reserves,the function and content,this part mainly from national investment operation principle,the government macroeconomic regulation and control principle and the principle of national financial stability the Angle demonstrates in detail the necessity of perfecting the legal system of foreign exchange reserves management.The second part analyzes the problems existing in the legal system of foreign exchange reserve management by sorting out the historical evolution and current situation of the legal system of foreign exchange reserve management in China.In the third part,through the comparative analysis of the legal system of foreign exchange reserve management of representative countries outside the region,the beneficial experience is obtained and the reference is made in combination with the reality of our country.Through the above analysis,the fourth part puts forward ideas and suggestions for the improvement of China’s foreign exchange reserve legal system,mainly including suggestions to accelerate the formulation of special laws and regulations on the management of foreign exchange reserves,improve the legal liability rules on the management of foreign exchange reserves,and improve the regulatory system on the management of foreign exchange reserves.