The Analysis Of Benefit Of Foreign Exchange Reserve

With the development of the international exchange and foreign trade, our country's foreign exchange reserve (FER) has greatly increased. To the end of the December, 2005, our country's FER has arrived 8189 billion US dollars, taking the second place in the world, less than that of Japan. And obviously, China will take the NO.1 place of FER in the world in the future. Indeed the country's huge FER is very important to keep the stabilization of the RMB's exchange rate in the world and to heighten the national power. But we got the huge FER at the cost of yielding management of reserve. We will take on more opportunity cost of the huge FER because China is in the period of developing country. It is very important to heighten the Rate of Return On Assets (RROA) and the efficiency in management of the FER. To take one thing with another, such as the fluidity and the security of the FER, It is crucial to raise the RROA and the efficiency in management of the FER.. In foreign countries, because they are facing or faced the same problem with us, they have made a lot of research and get a lot of production. Because of adverse influence of these measures and confining terms and special conditions of our country, we cannot use all measures in our country.In the base of the summarization of the relatively theory and the other people's research, this thesis starts with the deep research about the current situation of our country' FER, and tries to find out the main factors that lead to the rapid growth of FER. the writer analyses the positive and negative effect of rapid growth of FER, probes into the practical study of benefit of FER theories .The last part focuses on the counter measures to raise the benefit of FER.