Thinking on China Foreign Exchange Reserves Management under the Background of International Financial Crisis

China has enormous foreign exchange reserves,the structure of which focuses excessively on U.S.dollars and U.S.assets.This confronts China not only with the exchange rate risk of dollar depreciation,but also with the yield risk of market value decline of the products such as American national debts and agency debts,as well as the risk of currency mismatch of foreign exchanges.Due to the possibility of further international financial crisis,it is necessary for China foreign exchange reserves to expand domestic demand;on the other hand,within the planned scale of foreign exchange reserves,efforts should be made to diversify currency in mid-and long term,gradually reduce the dollar assets,make rational use of foreign exchange reserves in a diversified manner,and bring the state foreign exchange reserves into active play.RMB internationalization is the long term strategy of solving the issue of foreign exchange reserves management.