The Study Of The Foreign Exchange Scale Of China

The thesis focuses on the scale of China's foreign exchange reserve, finding out that debt,import and foreign direct investment are the main factors in quantity influencing the demand offoreign exchange reserve according to the regression analysis. It employs dynamic adjustmentmethods to investigate the demand for foreign exchange reserve in China in the past years(1994-2005), and makes the conclusion that the scale of China's foreign exchange reserve incertain years of 1994 to 2005 is excessive and it is suitable in the other years (including thepresent stage). Even though, we need to take some measures to manage the foreign exchangereserve of our country, for example, to arrange the existing foreign exchange reserve properly, totransform the management system of all foreign assets hold by the state authority, and toreinforce the risk management of the foreign exchange reserve of our country and so on.