An Analysis on the Reform of the Management System of Current Foreign Exchange Reserve in China

The reasonable scale of foreign exchange in our country should be the scale which insures the functions of payment and stabilizes the functions of rate to fully develop. Now, our country's high foreign ex- change has great influence on the independence of monetary policy, and income of foreign exchange is not too high. Under the condition, the reform of the management system of foreign exchange should follow the four ways: foreign exchange should be managed by the central bank and the special agency of foreign ex- change investment, carry out the measure called reserve the exchange for people, optimize the kinds of currency and assets structure of foreign exchange holding by the central bank, realize the increasing of both official and folk gold reserve.