Analysis On The Institutional Reasons Of Excessive Growth Of Foreign Exchange Reserve Of China

Along with the unceasing development of our country economy, our country melts into the international economy with more open posture. Our foreign exchange reserve sharply increased in recent years, and broke the cling of 1000 billion US dollars to be situated as the country, which owns the most foreign exchange reserve. The large amount foreign exchange reserve makes the contribution for our country economy; at the same time, it incurs more negative influences. Plenty of economists attempt to find out the reasons of rapidly growth of the foreign exchange reserve, and act appropriately to situate the problem.This paper plans to study from the balance of payments to the institutional factors that influence the foreign exchange reserve. Through analyzing exportation policy, the FDI policy, the exchange control system and the exchange rate system, this paper refines he joint action mechanism informed by each related institution, which reduces the growth of the foreign exchange reserve, and put forward some policy proposals.This article including four parts, main content as follows: First part is the introduction of foreign exchange reserve present situation and analysis of its scale. The second part illustrates the negative influence of excessive foreign exchange reserve. The third part analyzes the reasons of the rapid rise of foreign exchange reserve. The last part put forward several suggestions to solve the problem.