Analysis on the Cause of Quick Growth of Foreign Exchange Reserve of Our Country

In recent years,with the rapid development of China's foreign trade and the continuous afflux,china's foreign exchange reserve expanded rapidly.The growth of foreign exchange reserve has improved China's economic position and reinforced the ability of international finance to resist risk.However,the rapid increase in foreign exchange reserve has resulted negative effects such as increasing pressure from Renminbi appreciation,crippling the control ability of monetary policy in China and causing more export trade frictions,so we must take drastic measures to control and apply appropriately the foreign exchange reserve.