The Analysis Of China Foreign Exchange Reserves' Optimal Structure-Based On The International Exchange Risk

Foreign exchange reserves is to demonstrate a country's economic,monetary and balance of payments, such as an important indicator of overall strength of the shoulder adjustment of international payments and maintain the national currency exchange rate stability, defuse financial risks and maintain international international credibility. Since entering the 21st century, economic globalization is deepening of countries to create wealth, but at the same time, rapid flow of international capital has made the international economic environment, there are more unstable factors. Particularly since the financial crisis, global foreign exchange market exchange rate risks faced by the more intensified. Corresponding foreign exchange reserves in China rapid growth, as of December 2008 reached 1,946 trillion USD. Although the magnitude of China's reserves, the structural defects exist. Complex and changing patterns in the world economy, international credit monetary system faces great challenges today, so adjust the foreign currency reserve structure, improve the safety of reserves is becomming imperative.Papers in accordance with the BIS announces the REER , and using dynamic time series modeling of the general approach, from the currency structure and asset structure to explore the best structure of foreign exchange reserves. Model takes full account of the impact of the currency composition of China's foreign exchange reserves constraint conditions, at the risk of portraying a certain extent on innovative. In the discussion of asset structure, and explore several practical way to adjust the assets, including the focus on an analysis of the gold reserves. Focus on safety foundation to make a strategic adjustment of the foreign currency reserve assets, as well as how to implement active management of foreign exchange reserves provide some policy recommendations.