An Empirical Analysis Of The Influencing Factors Of China’s Foreign Exchange Reserves Risk Based On ANP Model

With the rapid growth of Chinese foreign exchange reserves, the risk of it increased, which increased the difficulty and complexity of management for the foreign exchange reserves. If the risk of foreign exchange reserves can’t be effectively controlled, it may not only cause the loss of reserve assets, but also trigger the outbreak of the overall financial risk.Effective identity and assessment of the risk of foreign exchange reserves is the basis of effective risk management, In this paper, I’ll use ANP model to put all the risk-related factor into a unified system to analysis which one impact the our foreign exchange reserves mostly. The result shows that the interest rate risk and exchange rate of our foreign exchange reserves are evident. At the same time, we need focus on the liquidity risk caused by global capital outflows.