What is the composition of China's foreign exchange reserves?
China's foreign exchange reserves are mainly composed of US dollar assets, Japanese yen assets, euro assets, British pound assets and other foreign currency assets. These foreign currencies exist in the form of bonds, stocks and currencies. And enjoy extremely high liquidity. Foreign exchange reserve is the foundation of a country's economic stability, so its choice is mainly based on the local currency of developed countries with stable currency value, and other varieties account for a relatively small proportion.
According to relevant statistics, China's current foreign exchange reserves are above these currency reserves, and now they are gradually diversified. In the currency structure of foreign exchange reserves, the proportion of US dollars decreased from 79% in 1995 to 58% in 20 14, and the non-US dollar currencies increased from 2 1% to 42% in the same period. And from 2005 to the end of 20 18, the scale of gold reserves in China increased from 600 tons to 1852 tons. All these reflect the good cooperative relations between China and other countries in the world.
Generally speaking, foreign exchange reserves generally choose the local currency of countries with relatively stable currencies. This is because during the global financial crisis, these countries have stronger economic stability than other countries, and the stability of foreign exchange reserves in turn can stabilize their currencies and make them more resistant to risks.