A Study Of Increment Management Of China's Foreign Exchange Reserves

In recent years, China's foreign exchange reserves are growing rapidly and has the characteristic of self-reinforcing, if the current scale of foreign exchange reserve on the basis of extraordinary growth continues, China will be faced with a series of problems,such as aggravate domestic inflation ,the RMB revaluation pressure, weakening the effect of macro-control and accumulation of the potential risks. This issue is not only the intensification of the foreign exchange reserves of China's economic influence is strengthening, but also shows that China's management of foreign exchange reserves and a relatively backward in a passive situation.In China's foreign exchange reserves, the capital and financial account, as well as other channels is a growing proportion of foreign exchange funds, and different sources of foreign exchange reserves its economic different connotation, on the basis of the currency and the stability of the exchange rate mechanism of the impact of a different, therefore, the incremental foreign exchange reserve management and control is very necessary and urgent. From the cost-benefit analysis to the results of research of Chinese scholars, study object is basically the total foreign exchange reserve of foreign exchange reserves increment control and management of the lack of theoretical and empirical system specific analysis, it is necessary to increase the problem of management of foreign exchange reserves theoretical and empirical analysis of Carding. In this article, foreign exchange reserves will be divided into two parts stock and incremental study of the new classification of the two modules, as well as from the incremental increase foreign exchange reserves of the four projects the macro level and perspectives, use summarized analysis, modeling and empirical research methods, in view of circumstances surge in foreign exchange reserves management incremental reserves the necessity and feasibility of a more systematic study. Through the establishment of foreign exchange reserves incremental model and the actual evidence, that incremental foreign exchange reserve management is the key point of reducing the balance of payments surplus into official reserves and the ratio of capital projects and the current ratio, at the same time increase the marginal propensity to consume. Speaking should adjust the balance of payments fundamentally, can adjust the degree of dependence on foreign trade, foreign investment, and the RMB exchange rate.