Author(s)

Jingwen Zhang

Corresponding Author

Jingwen Zhang

Abstract

Foreign exchange reserves are vital to a country and an economic entity, especially for a rapidly growing emerging economic entity like China. To make it better to play the role of regulating the economy, it needs to be maintained at a moderate level. Chinese $3 trillion in foreign exchange reserves virtually increased the cost of holding huge foreign exchange reserves, but also increased the risk of holding huge foreign exchange reserves and the difficulty of managing huge foreign exchange reserves.

Keywords

Foreign exchange reserve, Risks, Suggestions