The Research Of The Influence On Money Suppluy Of Chinese Foreign Exchange Administration System

Since 1994, China has been seeing a rapid sustained-accumulated foreign exchange reserve, which had a remarkable influence on China's money supply and made it more difficult to acute monetary policy. In the mean time, by analyzing the limitation in criterion for the current foreign exchange management system in our country, we can get the reason for that the People's Bank of China continually throw in the basic currency is influxion of "idle fund" and existence of system for constraint balance and selling. To resolve this question, the only effective way is that reform the system of foreign exchange in our country. Therefore, this thesis seeks to answer the following questions: the linkage between foreign exchange reserve accumulation and the amount of money supply; Measures to be taken by the People's Bank of China.This thesis is organized as following six chapters:Chapter one outlines the relationship between balance of payment, foreign exchange reserve and the amount of money supply in theory. Chapter two discusses the decisive factors of main channels of foreign exchange reserve accumulation in China. Chapter three introduces the current foreign exchange management system in our country. Chapter four analyzes the pressure of basic foreign exchange currency in market overt which result from existence of system for constraint balance and selling in foreign exchange course. Chapter five draw the conclusion: due to the existence of varies restriction factors, the tools for basic currency of abundance clash in market overt is deficiency, and result in overfull money supply. Chapter six provide some measures and give foreground for reform of foreign exchange system in our country through analysis.