A Study on the Causes of Growth in Foreign Exchange Reserve in China and Its Change Trend
Guo Hong-xian
Abstract
Guo Hong-xian
Abstract
Foreign exchange reserve in China has increased quickly in these years. The causes of the rapid increase are abnormal. The inflow of enormous international and domestic speculative foreign exchange capital, attracted by the expectation of appreciation of RMB, has made decisive effects on the abnormal increase of foreign exchange reserve in China in 2003. To counter this change tendency of foreign exchange reserve in China in the future, a more elastic foreign exchange administration system should be gradually established in China
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Foreign exchange reserve in China has increased quickly in these years. The causes of the rapid increase are abnormal. The inflow of enormous international and domestic speculative foreign exchange capital, attracted by the expectation of appreciation of RMB, has made decisive effects on the abnormal increase of foreign exchange reserve in China in 2003. To counter this change tendency of foreign exchange reserve in China in the future, a more elastic foreign exchange administration system should be gradually established in China
Key concepts: Renminbi, Foreign-exchange reserves, China, Foreign exchange, Economics, Monetary economics, International economics, Capital (architecture)