An Empirical Analysis of Factors Affecting the Scale of China's Foreign Exchange Reserves

In recent years,as China's economy continues to develop,the foreign exchange reserves increase much faster.The modest size of foreign exchange reserves has also become a controversial issue.This paper analyzes the factors which influence the size of foreign exchange reserves and use econometric theory to find out the factors that affect China's optimum foreign exchange reserves.China should control of the balance of foreign debts,optimize the currency structure of foreign exchange reserves and raise the international status of the RMB.