Welcome to Francis Academic Press

Academic Journal of Business & Management, 2023, 5(24); doi: 10.25236/AJBM.2023.052430.

Measurement and Research on the Adequate Size of China's Foreign Exchange Reserves

Author(s)

Xiao Han

Corresponding Author:
Xiao Han
Affiliation(s)

Business School, East China University of Political Science and Law, Shanghai, 201620, China

Abstract

Moderate size of foreign exchange reserves is not only to maintain economic stability of one of the important backing, but also reflects a country's comprehensive strength of one of the important indicators, this paper aims to measure the size of China's foreign exchange reserves is moderate and give the optimization of China's foreign exchange reserves size of the proposal. This paper uses the ratio analysis method and the IMF model to analyze the moderate size of China's foreign exchange reserves and compare it with China's actual foreign exchange reserves. At the same time, this paper puts forward suggestions to optimize the size of foreign exchange reserves, including: the development of moderate foreign exchange reserve size target, optimize the allocation of foreign exchange reserve assets, promote the development of RMB internationalization, and improve the degree of market openness. These suggestions not only help to optimize the size of foreign exchange reserves, but also help to promote China's economic development and the internationalization of financial markets.

Keywords

foreign-exchange reserves, moderate scale, proportionality analysis

Cite This Paper

Xiao Han. Measurement and Research on the Adequate Size of China's Foreign Exchange Reserves. Academic Journal of Business & Management (2023) Vol. 5, Issue 24: 204-210. https://doi.org/10.25236/AJBM.2023.052430.

References

[1] Triffin, R. National Central Banking and the International Economy[J].Review of Economic Studies, 1947, 14(2):53-75.

[2] Mantao Jin.Empirical Analysis of the Proportional Analysis Method on the Adequate Size of China's Foreign Exchange Reserves[J].JOurnal of Guangdong College of Finance and Economics,2006(06):61-64.

[3] Ji Zhang.The Estimation & Comparison of Moderation of China’s Forex Reserve Scale at Present Phase from Various Perspectives[J]. Finance, 2020, 10(5): 488-505

[4] Weijie Xie. Research on the scale of China's foreign exchange reserves based on proportional analysis method[J]. Journal of Inner Mongolia Agricultural University(Social Science Edition), 2012, 14(04): 76-77+80.

[5] Liping Kong. Quantitative Analyses and Comparison about Scale of Foreign Exchange Reserves[J]. West Forum,2008(7) 35