Study on the Negative Effects of High Foreign Exchange Reserves
Chun Chen
Abstract
Chun Chen
Abstract
China's foreign exchange reserves(excluding Hong Kong and Taiwan) have been growing quickly in recent years.On a yearly increasing trend,the foreign exchange reserves have exceeded 1,900 billion US dollars by September 2008,which indicates that China has a great capacity for international payment and has globally influential economic power.However,the increasing foreign exchange reserves have also caused many adverse influences.This paper gives a study on the negative effects of high foreign exchange reserves on China's economic growth and tries to find a way to strengthen management of the foreign exchange reserves.
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China's foreign exchange reserves(excluding Hong Kong and Taiwan) have been growing quickly in recent years.On a yearly increasing trend,the foreign exchange reserves have exceeded 1,900 billion US dollars by September 2008,which indicates that China has a great capacity for international payment and has globally influential economic power.However,the increasing foreign exchange reserves have also caused many adverse influences.This paper gives a study on the negative effects of high foreign exchange reserves on China's economic growth and tries to find a way to strengthen management of the foreign exchange reserves.
Key concepts: Foreign-exchange reserves, China, Foreign exchange, Business, Balance of payments, International economics, Sterilization (economics), Economics