The Causes Of Excessive Scale Of China’s Foreign Exchange Reserves And Countermeasures

U.S. subprime mortgage crisis, which has triggered a global financial tsunami, and the European sovereign debt crisis cast a shadow over the economic development of countries。 As the main source of China’s foreign currency reserve assets, there are certain difficulties and problems in economic development。 Due to loose monetary policy to restore the national economy, the world is also in excess liquidity status。 China’s foreign currency reserve assets is the first among the world。 Facing the foreign currency reserve assets shrunk and imported inflationary pressures, it has become particularly important to manage China’s foreign currency reserve assets。Since the Southeast Asian financial crisis, Southeast Asian countries have accumulated massive foreign exchange reserves and then trigger discussion and research on moderate foreign exchange reserves。 Relative to moderate foreign exchange reserves, many scholars put forward the concept of excessive foreign exchange reserves and the negative impact of excessive state of foreign exchange reserves in the economy and society。 Since1998,China has accumulated a large amount of foreign currency reserve assets。 Because of accession to the WTO in2001and the BoP dual surplus phenomena, China’s foreign currency reserve assets of scale will still continue to increase。 According to the measure of foreign exchange reserves, the scale of China’s foreign currency reserve assets has been already in the over-state。 Export-oriented trade strategy、 attracting investment policy、foreign exchange settlement system and the international hot money opportunism are important reasons for China’s accumulated excessive foreign currency reserve assets。 Through analyzing the cumulative foreign currency reserve assets of the causes as Southeast Asian countries、Russia、Norway, it obtained the commonality of causes uniqueness with China。First it analyzes the Temasek successful business model、 the two-tier management model of Japan and the science of management structure and diversification of reserve assets of South Korea。 Second, it analyzes the high degree of transparency of the Norway and the transformation of Russia’s foreign currency reserve assets management Finally, it is about the foreign currency reserve assets of the United States in gold-based management models, which largely avoided the volatility of the paper money assets。Comparison with these countries and combined with China’s current foreign exchange reserves management situation, it concludes with recommendations and countermeasures of China’s foreign currency reserve assets management。...