Thoughts on the Supernormal Growth of Foreign Exchange Reserve in China

The supernormal growth of foreign exchange reserve is becoming an important factor influencing China's economy that we can not afford to ignore.By analyzing the causes,new characteristics,positive and negative effects and rationality of current foreign exchange reserve,some policy suggestions are put forward to strengthen the management of our foreign exchange reserve,i.e.: control the scale of growth;establish new system to convert reserve to investment,fund to capital;select rational structure of currency and assets;carry out tax policy to reduce hot money and foreign currency speculation;and strengthen risk management for foreign exchange reserve.