The present situation of foreign exchange reserves Since 2002, China's foreign exchange reserves have entered a surge stage. The rapid growth of China's foreign exchange reserves began in the mid-1990s, with 196 breaking through 1000 billion US dollars for the first time, and in 2005 it broke through 800 billion US dollars, an increase of nearly seven times in nine years. Especially in the past four years, the growth rate of foreign exchange reserves has been further accelerated, with the annual increase of reserves exceeding $654.38+000 billion, and exceeding $200 billion in 2004 and 2005. In April 2006, the scale of China's foreign exchange reserves surpassed that of Japan for the first time, becoming the largest reserve country in the world. As of March 2007, China's foreign exchange reserves have reached 12020438+000 billion US dollars. The surge in foreign exchange reserves has had a considerable negative impact on macroeconomic operation, and it has also made us passive in foreign economic exchanges, which has become an urgent problem to be solved. At the end of June, 2006, China's base currency was 6,309.6 billion yuan, and foreign exchange reserves, as one of the channels for putting in the base currency, amounted to 722 1.6 billion yuan. This shows that the surge in foreign exchange reserves has seriously restricted macroeconomic regulation and control, and also shows that the scale of foreign exchange reserves is out of control to some extent. The rapid growth of foreign exchange reserves is a common phenomenon in developing countries, not unique to China.

Reason;

(A) the long-term foreign trade surplus is an important reason for the formation of huge foreign exchange reserves.

(2) Preferential foreign investment and foreign trade policies have brought a lot of foreign direct investment, resulting in a continuous surplus of revenue and expenditure capital on the same day.

(3) The inflexible remittance and application system has caused great pressure for RMB appreciation and increased China's foreign exchange reserves.

(D) The global economic imbalance has prompted a large amount of US dollar reserve funds to return. Under the condition of a country's open economy, the internal imbalance of the economic system needs corresponding external imbalance to make up. The increase of China's foreign exchange reserves and the continuous surplus of foreign trade have become the external manifestations of alleviating internal imbalances.

The positive impact is to enhance solvency and international status ... (in fact, it is the function of foreign exchange reserves)

Negative effects:

First, it increases the operating cost of the central bank outside hedging, and weakens the independence of the central bank's monetary policy and the effectiveness of monetary policy regulation.

This "hedging" operation aimed at weakening the negative impact of a large number of base currencies has limited effect.

Second, the dynamic structure that leads to economic growth is unbalanced, which is not conducive to the transformation of economic growth into domestic demand-oriented mode.

Third, it has increased the pressure of RMB appreciation, which is not conducive to the smooth development of foreign trade.

Fifth, it has become an important reason for excess liquidity, which has affected the efficiency of bank's capital use and aggravated the imbalance of economic structure.