Optimization Of China’s Foreign Exchange Reserves,the Structure And Configuration Of Strategy

With the rapid expansion of the scale of China’s foreign exchange reserves and a sharp increase in annual new reserves, China’s foreign exchange reserve structure optimization has become a hot topic of research at home and abroad. The fact that foreign exchange reserves increased year by year, which fully demonstrates the growing strength of China’s economic, fruitful results of the basic state policy of reform and opening up in China, especially in opening up guidelines and policies harvest.As of the end of June2012, data released by the State Administration of Foreign Exchange, China’s official foreign exchange reserves amounted to＄3.2trillion. Meanwhile, according to the International Monetary Fund (IMF) statistics show that China’s foreign exchange reserves, the composition of dollar reserves accounted for more than60%, while the U.S. dollar index way downward trend since2002, especially during the financial crisis of2008fell to a record low of71.31points in2002-2012, Nine years fallen by about1/3; proportion of equity investments is too low, accounting for only7.8%of the equity investment in the United States; debt structure and the duration of a single, unreasonable, and so many other issues. The face of the world economic uncertainty caused by the financial crisis, in particular, is the instability of the U. S. economy, the economic losses brought about by China’s huge foreign exchange reserves and strategic risks are great. Therefore, the adjustment of China’s foreign exchange reserves in the world economic situation, the development of a multipolar structure, to ensure the high level of foreign exchange reserves in China to be able to do to maintain and increase their value, is in urgent need of the important issues in China’s foreign exchange reserves management system.In this paper, China’s foreign exchange reserves on five aspects of the currency structure of debt, equity, precious metals, as well as IMF Special Drawing Rights as the research object, each optimized path, the currency structure, should adhere to the strategy of diversification to reduce proportion of U.S. dollars, an increase of euro currency and emerging economies, to actively promote the RMB internationalization of the RMB to a basket of currencies, and thus to ensure the safety and profitability currency; debt structure and maturity of the debt aspect, adjust, reduce debt reserve; equity side, increased equity investment channels and perfect the mechanism of sovereign wealth fund investment; precious metals to increase the native gold reserves, the gold in China, the establishment of the precious metals special investment funds; the IMF SDR terms of capital on a limited allocation of the SDR, at the same time promote the process of internationalization of the RMB to build an SDR super-sovereign currency.After I mathematical model based on, draw better diversification strategy Specifically, the strategy of diversification through currency diversification, diversification of assets diversified investment channels several aspects. Finally, I make policy recommendations to the end of this article.