The Portfolio Optimization Of The China’s Foreign Exchange Reserves In US Dollar Based On The MMVD Model

Since the reform and opening up of our own country, the foreign exchangereserves in China has been increased rapidly. And now the gross of foreign exchangeassets in US dollar is the first in the world to scale. With too much foreign exchangereserves of dollar in china, the reserves has been depreciated seriously after the crashprocess of dollar in2005s. Therefore, the optimization of the structure of the dollarforeign exchange assets is more and more important. In this content, First, Combinethe relevant data which released by the federal reserve with the research results fromthe experts and scholars from the the domestic and foreign, and then summarizeroughly the structures of the present situation and problems about our foreignexchange reserve; Second, analysis the way respectively to optimalize our China’sforeign exchange reserves from two aspects: maintenance of the value and add thevalue. At last, This paper aim to adjust the structure of dollar reserve assets, whichused the theory of MMVD to construct the model of structure management for foreignexchange reserves, and then get the best reasonable weight of dollar foreign exchangeassets in China. At the same time, compare the great differences between theallocation structures of the dollar foreign exchange assets in different countries andregions, draw lessons of the foreign exchange reserve management experiences andlessons from the other countries and areas, and combine with the situation of China’sforeign exchange reserve assets, put forward the corresponded policies to solve theproblems of the foreign exchanges in US dollar in our country.