The Source And Application Research For Foreign Exchange Reserve In China

since our country’s the reform of foreign exchange system in1994have began to function, China’s foreign exchange reserves have became rapidly grew,and boosted the continuous development of our country economy,it not only provided the motivation that enhanced China’s economic strength strongly,but also has manifested the foreign payment of China. but we need tomake concern in China’s foreign exchange reserves which bring a series of problems.the increase in our country’s foreign exchange reserves mainly come from the double-surplus,namely, the international balance of payment in the current account surplus and capital and financial project surplus, when we consider the export structure, trade policies, and foreign investment, we found that using of China’s foreign exchange reserves had the features in low yield, but the high cost,it is known as " Capital Doubtful Recycling " phenomenon, this phenomenon will seriously affect the reasonable utilization of China’s foreign exchange reserves and sustainable growth, considering the situation of exchange loss," Capital Doubtful Recycling circle" phenomenon in our country will be more obvious. The research of this paper began from the current situation in China, I used the data in balance of payments more than20years to make the in-depth analysis of the Chinese foreign exchange reserve,and I discussed the sources and application of each aspects for foreign exchange reserves, this paper discussed the influence of " Capital Doubtful Recycling " in our country, and pointed out the unsustainable feature in foreign exchange reserves of China, and put forward policy Suggestions in order to provide strong practice and theory function in China’s foreign exchange reserve management.This paper mainly adopts qualitative analysis and statistical data analysis to discuss in reflection of" Capital Doubtful Recycling " in China,I cited a lot of data charts, and combines the comparative analysis to illustrate the China’s specific conditions with"Capital Doubtful Recycling ", then I put forward that the Chinese foreign exchange reserve have the features in using of high cost and low profits, I think we should expand the way of utilization in China’s foreign exchange reserves and improve measures in change of trade structure so that huge foreign exchange reserves can be more reasonable in China’s economic construction.The article is divided into five parts, the first chapter is the introduction, this part expounds the research background, research significance, literature review and research methods. The second chapter studies structure features of the China’s international balance of payment and analyse source feature of China’s international balance of payments,the I make an analysis of the structure characteristics, then points out the risk in China’s international balance of payments. The third chapter makes the research in Chinese foreign exchange reserve to carry on the analysis, I come to the conclusion that China’s foreign exchange reserves accept the fact that revenue is too low. The fourth chapter states the unsustainable feature in China’s foreign exchange reserves, and it’s feature for China’s foreign exchange reserves exacerbated the " Capital Doubtful Recycling " effects. The fifth chapter makes a conclusion and provide some policy suggestions.The first conclusion that our country reserve really exist Capital Doubtful Recycling " phenomenon, the rate of return and cost in foreign exchange reserves have s big gap, then the author puts forward some kind of policy Suggestions. They include expanding single channel of foreign exchange reserves investment, strengthening the foreign direct investment management and improving effective adjustment structure of foreign exchange reserves,At the same time,we can Actively promote "going out" policy.This paper concluded that from our source and use for foreign exchange reserves, It exists the feature in low profits and high cost, it seems like " Capital Doubtful Recycling " proposed by Joseph Stiglitz, because of the specific circumstance factors," Capital Doubtful Recycling "phenomenon in our country’s performance is more outstanding, and in the long run this phenomenon will impete China’s economic construction and the stability of foreign exchange reserves growth, this paper argues that we should actively explore the using channels of Chinese foreign exchange reserve, improve our import and export trade structure and original habit in China, strengthening our country gold reserves, actively promoting "going out" policy of our country’s enterprise. I hope the policy Suggestions can promote the sustainable growth of China’s foreign exchange reserves and more efficient utilization.