Foreign Exchange Reserves And M2 Of The Relationship Between Countries Comparative Analysis Of China's Revelation,

Since the reform of foreign exchange administration system in 1994, the foreign exchange reserve of china has been increasing. Especially in 1996, China jumped to the first position of the world in foreign exchange. At the same time, the currency liquidity of the market is the topic given close attention to in recent years. In this essay, a statistical analysis between foreign exchange and money supply is made and a comparison analysis is also made among our country and other developed and developing countries. After the analysis, it concludes that the money supply is constrained by the foreign administration system. There is no relationship between foreign and money supply in the developed countries and the monetary policy is independent.