China's International Reserves Moderation

International reserves is an important area of international finance, international monetary system is an important component part of it with a country's international balance of payments, currency exchange rates, economic policies, and so on are inextricably linked. Of a country's international reserves means that the state-owned strong external capacity to pay, a better ability to resist risks, but too much of the international reserves will be a tremendous waste of resources and the opportunity costs of such. How can a good control of the country's international reserves appropriately?A country's international reserves moderation reflected as an appropriate scale and structure of reasonable aspects. Judge a country's international reserves is appropriate, it not only depends on the scale of whether it is appropriate to also look at its structure is reasonable. At present, a country's foreign exchange reserves held by the best size and structure, in theory and in practice, there is no uniform standard. Internationally, in order to a country's economic health functioning, but the definition of the minimum foreign exchange reserves, the limit is no consensus for the structure of foreign exchange reserves is no more unified understanding. Traditional view, the foreign exchange reserves should not be less than 3-4 months of imports and payment of the Asian financial crisis, has proposed a foreign currency reserve should not be less than the size of short-term foreign debt. However, considering imports, debt, foreign exchange controls special factors, the profits of foreign remittances, the special period of economic transition such complex factors, the special combination of China's own national conditions, and what the scope and structure of international reserves is the most suitable then, there is no conclusion.This paper size and structure of the two aspects of our country's international reserves situation at the moment facing problems, to strengthen the country's international reserves management policy of modest proposals should have some practical significance.