ABSTRACT
The number of our foreign exchange reserves has experienced quick growth over the past thirty years,from breaking 100 billion U.S. dollar in 1996 to breaking 1.5 trillion U.S. dollar in 2007. The so high-speed increase and gigantic scale,are a double-edged sword for our country development of the economy. As a developing country,China definitely needs a certain amount of foreign exchange to ensure external payments,interfere in foreign exchange market and promote the country credit. But excessive exchange cover scale may produce problems in management. At first,this paper introduces the development of our country foreign exchange reserves,analyses the reasons for quick growth of foreign exchange reserves,illustrates the negative effects of excessive foreign exchange reserves,reveals the problems in foreign exchange reserve; Then analyses and comprises the management systems of foreign exchange reserves in five counties; At last,makes recommendations for our country’s management of foreign exchange reserves.
Keywords: foreign exchange reserves; international comparison; meanings