China's foreign exchange reserves are huge and have greatly increased in recent years. Experts from the National Development and Reform Commission of the mainland recently wrote that the loss of foreign exchange assets held by the mainland central bank is extremely alarming and the diversion of foreign exchange is very urgent. Analysts believe that RMB needs to be internationalized and freely convertible as soon as possible. China insists on buying huge foreign debts, and the current foreign exchange management system makes people miserable. Zhang Anyuan, director of the Finance Office of the Economic Research Institute of the National Development and Reform Commission of the mainland, recently wrote that the loss of foreign exchange assets held by the central bank is extremely alarming. If the average exchange rate of RMB against the US dollar in that year is used to calculate the annual increase in foreign exchange reserves, and then the exchange rate cost is calculated at different exchange rates after appreciation, then by the end of last year (20 10), the exchange rate loss of the newly added foreign exchange reserves by the central bank in the past seven years is as high as 27 165438. The article said that if the exchange rate of RMB against the US dollar rises to 6 in the future, the loss will climb to 578.6 billion US dollars. Zhang Anyuan stressed that this loss is definitely not compensated by foreign exchange investment income. Except for the "government purse" of the central bank, no commercial organization will do such a loss-making business. He believes that it is urgent to divert foreign exchange reserves. According to the data released by the central bank, by the end of March, China's foreign exchange reserves had reached $3,044.7 billion, accounting for one third of the global foreign exchange reserves. According to Zhang Anyuan's calculation, China's foreign exchange reserves have lost nearly 2 trillion yuan in the past seven years, and the average loss of ordinary people in China has exceeded 1.400 yuan. The authorities claim that they have no funds to implement universal public health care, and the national public health care only costs 400 billion yuan every year. The loss of foreign reserves in these seven years far exceeds this figure. Sun, a professor of financial management at the School of Asian and African Studies, University of London, told the BBC that there is no need for China to hold such huge foreign exchange reserves. The authorities need to change the highly centralized foreign exchange management mode, make the RMB market-oriented and give enterprises greater foreign exchange management power. The ultra-high foreign exchange reserves make the inflow and outflow of funds in the mainland very contradictory: on the one hand, economic development needs to "import" a lot of funds from abroad; On the other hand, the authorities "export" huge amounts of cheap funds abroad by increasing foreign exchange reserves. According to China's foreign exchange policy, for every US$ 65,438+0 of goods exported by China, more RMB will be issued at home to balance it. At the end of last year (2065,438+00), China's foreign exchange reserves were about US$ 2.8 trillion, from which domestic RMB issued exceeded RMB 65,438+08 trillion, equivalent to nearly six times the market currency circulation (M0) of 3.4 trillion in 2008.