Foreign Exchange Reserves To Study The Impact Of Monetary Policy

With China's opening to the outside world degree's unceasing enhancement, as well as the export trade for many years has maintained the favorable balance, our country foreign exchange reserve also unceasing increases along with it. Because the foreign exchange reserve is a country's comprehensive economic target, the rapid growth of China's foreign exchange reserves indicates the overall and the strong growing, also marks the external payments capacity and the ability to adjust the balance of payments increased, so that our government have the possibility to carry on the driving adjustment to the international payment balance policy. Certainly, the rapid increase of foreign exchange reserves also means that the standard currency in domestic market delivery's corresponding increase, to a considerable extent, this greatly increased the pressure of inflation, at the same time increased the expected appreciation of the RMB. In addition, much of the foreign exchange reserves will cause excessive waste of financial resources and a corresponding increase in the risk of changes in exchange rate losses. In short, how to regard the rapid growth of China's foreign exchange reserves and the explosive growth to our country monetary policy's influence actually worth us seriously considering. In such circumstances, I carry on the research analysis based on the foreign exchange reserves to the monetary policy influence's angle of view under.This article bases on the open economy condition, embarks from the foreign exchange reserve and monetary policy's inner link and the function mechanism, takes our country foreign exchange reserve's development present situation as the object of study, researches excessive foreign exchange reserve to our country monetary policy's influence from the monetary policy's movement mechanism. Firstly, carries on the elaboration from the theory and the practice angle to between the foreign exchange reserve and monetary policy's relations, summaries the foreign exchange reserve to the monetary policy influence basic principle.Secondly, further evidences the relationship between the two from empirical analysis, through a comparative analysis, concludes the foreign exchange reserves have produced negative effects to the monetary policy, the loss of the independence of monetary policy, the role of monetary policy to "leakage." Thirdly, in view of the above situation, analysis the policy of sterilized intervention, which can reduces this kind of negative effects. Finally, in view of the use of methods and the problems of the policy of sterilized intervention proposes how to improve the monetary policy and other policy coordination between the countermeasures and suggestions.