Research On China's Foreign Exchange Effective Management Of Post-crises Era

Starting in 1994, Chinese foreign exchange reserve is steadily increasing since the reformation of foreign exchange management system. At the present time, China has the largest scale and the highest growth rate of foreign exchange reserves in the world. Attributing to the scale of Chinese foreign exchange reserve increased rapidly, our international payment capacity and international competitiveness have obtained an impressive promotion. But at the same time, a rapid growing of foreign exchange reserves can also bring us the pressures of inflation, monetary policy and RMB revaluation. From current situations, our managerial systems and approaches can not be suited to realities in China. The foreign exchange reserve low-effective management has negatively influenced our micro and macro economy and social environment. Many problems, such as, how to control the growth rate and scale, how to optimize currency and capital structure, how to diversify the risk, how to stabilize and gain greatest value, are concerned and urgent.The thesis focuses on China's foreign exchange reserve management, developing with the logic of "Pose question-Analyze question-Resolve question". Starting with the connotation of the effective-management, foreign exchange reserve effective management has been called up by the method of analogy. Based on this concept, China's foreign exchange reserve management's status quo and characteristic have been pointed out. Through the empirical and theoretical examination (including three aspects:security, fluidity and profitability), it draw a conclusion that China's foreign exchange reserve management is in low-effective status, and the reasons derive from various aspects, but the most significant one is lack of a prefect and rational management system. Under the external and internal circumstance, the unsustainable status must be enhanced and promoted. Furthermore, the paper exemplifies and summarizes Singapore's experience from management system and approaches, in order to provide theoretical and practical reference for China's foreign exchange reserves effective management. Then, the paper concentrates energy on post-crisis era, analyze the feature and trend of the post-crisis era. It analysis of China's profits and losses in crisis revealed that China's real loss in this financial crisis is not severe and post-crisis era is the best opportunity to promote China's foreign exchange reserves effective management. At last, some suggestion has been put forward. From macro perspective, it builds up a new foreign exchange reserve management system, and from micro perspective, it offers concrete political suggestion and strategy.