Economics, Econometrics and Finance
8 years ago

China's Massive Foreign Exchange Reserve Calls for Urgent Reform

Journal of Liaoning Normal University
The Theoretical Design of the Elastic System of China's Foreign Exchange Reserve
Fei Lin

Paper Summary

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China's foreign exchange reserve exceeded 3.0 trillion US dollars in 2011, surpassing the country's actual needs. To address this, a new elastic system for managing the reserve quantity is needed. The goal is to explore and implement a more flexible system to better match the reserve with economic demands. This approach aims to enhance the management of China's foreign exchange reserve on a larger scale.