Foreign exchange reserves in cash, bank deposits, foreign government bonds, corporate bonds and other forms of existence.
The usefulness of foreign exchange reserves are: 1, balance of payments. 2, stabilize the value of the national currency. 3, as the country to foreign loans or repayment of material guarantees.
Specifically depends on the situation at the time depending on the use of the way and the amount of use.
Foreign exchange reserves, also known as foreign exchange reserves, is the amount of foreign hard currency held by the central bank of a country.
China's implementation of mandatory settlement system, foreign exchange reserves include operating foreign exchange and reserve foreign exchange, of which operating foreign exchange accounted for about 30% of the total reserves. So our foreign exchange reserves represent not only the central bank's foreign exchange reserves, but the entire society's foreign payment capacity, which is different from the content of foreign exchange reserves in Western countries and most developing countries!
Foreign exchange reserves is of course more good and less, because more foreign exchange reserves, the country's economy will be more robust, the economy will continue to grow, in the international position will be greatly improved.
Question 2: Why are foreign exchange reserves more bad? Figure out the problem, first of all, to understand how the foreign exchange reserves.
In China, the most important foreign exchange reserves is nothing more than foreign trade revenue, this is the most important, on foreign trade, foreign trade revenue, the more foreign exchange income, the more foreign exchange reserves, according to reason this should be a good thing, we will generally so understand, but this is to be combined with one of China's national conditions, in the country, residents and businesses are not allowed to hold foreign exchange, the past a long time are In this way, it seems that the recent policy has been adjusted, but the essence of the past with basically nothing different, in this case, the residents of personal and business hold foreign exchange is useless, there is no place to spend the domestic, and has just said that the national policy is not allowed, the enterprise must sell these foreign trade income from foreign exchange to the state, the formation of the country's foreign exchange reserves, the enterprise sells foreign exchange to the country, the country to pay the hacking industry ah, otherwise Enterprise is not in vain? Where does the RMB paid to the enterprise come from? The central bank is the People's Bank of China printed chant, that is to say, enterprises sell to the country how much foreign exchange, the country has to pay the corresponding yuan to the enterprise, that is, the central bank will have to print an equal amount of money out of this time, a problem comes, the country's monetary policy would have been independent, according to the domestic economic situation to decide, and now with the more and more foreign exchange income to become the country's foreign exchange reserves, the central bank also lead out more and more RMB, it may cause an excess of RMB in the market, more money will cause the price of all kinds of commodities, CPI rise, housing prices rise, food prices rise, garlic you hard, beans you play came, these phenomena part of the reason is that the circulation of too much money, and a large part of this is foreign exchange income into over, so from this point of view, a huge amount of foreign exchange income will cause an excess of RMB in circulation, and it will disturb the domestic economic order, which is mainly caused by the current domestic settlement system;
Foreign investment should also be part of the foreign exchange, foreigners come to China to take the dollar to China to change into RMB, these investment, tourism, a variety of foreigners come to China after their dollars will become RMB, those dollars are into a part of the foreign exchange reserves, the foreigners look at China's economy is good, many people want to invest in China, and even a lot of people want to invest in China, even a lot of people want to invest in China, even a lot of people want to invest in China. People want to come to China to invest, and even many people are coming to China to speculate on the house, speculate on a variety of things that can appreciate in value, financial stocks and bonds are also part of the investment object, because the amount of money to come to these speculative money is also very huge, the equivalent of the central bank should be drawn out accordingly so much yuan, so that the yuan is more likely to be overloaded, so the rise in domestic housing prices in the past few years, the price of all kinds of commodities continue to rise part of the also want to "thanks" to the "thanks" to the "thanks" to the central bank. "Thanks" to these speculative hot money;
As for the foreign exchange is too much of the bad aspects of another is that the country has so much foreign exchange, that is money, money is to spend, to invest, otherwise there is no use, but China has accumulated so much foreign exchange reserves, there is no place to spend in the country to spend to invest can only go to China, but also to invest in the country's foreign exchange reserves. Outside the place, when the enterprise has import demand, such as domestic to import iron ore, import foreign equipment, to pay foreign exchange, such as the dollar to foreign customers, but the enterprise is no foreign exchange, because he sells things back to the money - those foreign exchange has been sold to the country, when he now needs foreign exchange to buy foreign things, he has to with the The country to exchange foreign exchange back and then pay to foreign countries, so part of the foreign exchange and back to the flow of enterprises used to import, which only accounts for a small part of our foreign exchange, there is a large amount of foreign exchange balances there, the money to invest ah, the problem is here, to invest, is to make a profit, but the market has the risk of investing with caution this sentence on the investment of such a huge amount of foreign exchange reserves and then appropriate, the people of domestic Domestic people's hard-earned foreign exchange can not casually lose it. But the problem is here, we do not have a place to invest, there is no return on what is relatively safe return on investment in good projects, China currently holds more than 1 trillion U.S. dollars of U.S. Treasury bonds, but that yield seems to be 2% -3% that is about that number, and now how much inflation in the country, so that the return on investment is very low; in addition to the domestic talent in this area is not so much, so we will see A lot of foreign investment projects all of a sudden lost how many billions of dollars, billions, tens of billions of dollars, dollar reports, about these look at the relevant CICC, Huijin, the United States Blackstone related reports should have some.
So based on these, foreign exchange reserves are good enough, not the more the better, after all, you take so many dollars, the dollar is constantly depreciating a, basically everyone in the devaluation of the Japanese yen in recent months and half a year time depreciation seems to be 20% or so, everyone is competing in the depreciation of the time, the more foreign exchange you hold, the more the wealth shrinkage is also more powerful ... >>
Question 3: How much foreign exchange reserves in the end is considered good National conditions are different foreign exchange reserves play a different role
How much foreign exchange reserves in a country is considered appropriate, in theory and in practice there is no uniform standard. In general, countries in the consideration of their own modest level of foreign exchange reserves, should be a comprehensive examination of the world known as the Confucian cultural circle, East Asian foreign exchange reserves alone in the world, can be said to benefit greatly from Confucian culture.
Asian countries are often proud of high foreign exchange reserves, which is considered to indicate that their financial situation is stable. In fact, high foreign exchange reserves is not necessarily a good thing.
Consider all aspects of your economy. For example, the scale and speed of national economic development, the degree of economic openness, the development of foreign trade, the use of foreign capital and international financing capacity and national macro-control capacity. Developed countries have stronger comprehensive strength, its local currency is the international reserve currency, can be used directly for foreign payments, and the exchange rate is mostly free floating. Therefore, generally they hold less foreign exchange reserves. Developing countries are relatively short of foreign exchange resources, the local currency is not freely convertible, the economic level is relatively backward, and developing countries on the exchange rate to implement a different degree of management, the scale of foreign exchange reserves should be held correspondingly larger.
Question 4: China is now so much foreign exchange reserves is more good or bad foreign exchange reserves is a country's monetary authorities hold, can be used for foreign payments of foreign convertible currency. Not all national currencies can serve as international reserve assets, only those in the international monetary system occupies an important position, and can be freely exchanged for other reserve assets of the currency can serve as international reserve assets. China and the rest of the world in foreign trade and international settlements in the regular use of foreign exchange reserves are mainly the U.S. dollar, the euro, the Japanese yen, the pound and so on.
A certain amount of foreign exchange reserves is a country's economic regulation, to achieve an important means of internal and external balance. When the balance of payments deficit, the use of foreign exchange reserves can promote the balance of payments; when the domestic macroeconomic imbalance, the total demand is greater than the total supply, you can use foreign exchange to organize imports, so as to regulate the relationship between total supply and total demand, and promote macroeconomic balance. At the same time when the exchange rate fluctuations, you can use foreign exchange reserves to intervene in the exchange rate, so that it tends to stabilize. Therefore, foreign exchange reserves are an essential means to achieve economic equilibrium and stability, especially in the continuous development of economic globalization, a country's economy is more vulnerable to the economic impact of other countries, but more so.
Generally speaking, the increase of foreign exchange reserves can not only enhance the ability of macro-control, but also help to maintain the credibility of the country and enterprises in the international community, and help to expand international trade, attract foreign investment, reduce the cost of financing for domestic enterprises, and prevent and resolve international financial risks. Of course, this does not mean that the more foreign exchange reserves the better, because holding foreign exchange reserves is to pay the price. First, the foreign exchange reserves performance for holding a financial debt expressed in foreign currency, not into the domestic production and use. This gives rise to the problem of opportunity cost, that is, if the monetary authority does not hold reserves, it can use these reserve assets to import goods and services, increase the real resources of production, thereby increasing employment and national income, while holding reserves is to give up this benefit. Holding foreign exchange reserves, therefore, takes into account the issue of opportunity cost. Second, the increase in foreign exchange reserves to expand the money supply accordingly, if the foreign exchange reserves are too large, it will increase inflationary pressure and increase the difficulty of monetary policy. In addition, hold too much foreign exchange reserves, may also suffer losses due to the depreciation of foreign currency exchange rates. Therefore, foreign exchange reserves should be maintained at a moderate level.
Moderate level of foreign exchange reserves depends on a variety of factors, such as import and export situation, the size of foreign debt, the actual utilization of foreign capital. Should be based on the holding of foreign exchange reserves, cost comparison and these aspects of the situation to maintain foreign exchange reserves at a moderate level to increase foreign exchange, you need to issue the yuan to buy the supply of yuan will increase, then the yuan will depreciate, so the exchange rate will fall
Question 5: foreign exchange reserves are more or less good? Foreign exchange reserves are the foreign convertible currency held by the monetary authority of a country that can be used for foreign payments. Not all national currencies can be used as international reserve assets, only those in the international monetary system occupies an important position, and can be freely exchanged for other reserve assets of the currency can be used as international reserve assets. China and the rest of the world in foreign trade and international settlements in the regular use of foreign exchange reserves are mainly the dollar, euro, yen, pound sterling and so on. A certain amount of foreign exchange reserves is a country's economic regulation, to achieve an important means of internal and external balance. When the balance of payments deficit, the use of foreign exchange reserves can promote the balance of payments; when the domestic macroeconomic imbalance, the total demand is greater than the total supply, you can use foreign exchange to organize imports, so as to regulate the relationship between total supply and total demand, and promote macroeconomic balance. At the same time when the exchange rate fluctuations, you can use foreign exchange reserves to intervene in the exchange rate, so that it tends to stabilize. Therefore, foreign exchange reserves is to achieve economic equilibrium and stability of an indispensable means, especially in the continuous development of economic globalization, a country's economy is more susceptible to the influence of the economy of other countries, is more so. Generally speaking, the increase of foreign exchange reserves can not only enhance the ability of macro-control, but also conducive to maintaining the credibility of the country and enterprises in the international arena, and help to expand international trade, attract foreign investment, reduce the cost of financing domestic enterprises, to prevent and resolve international financial risks. Of course, this does not mean that the more foreign exchange reserves the better, because holding foreign exchange reserves is to pay the price. First, the foreign exchange reserves performance for holding a financial debt expressed in foreign currency, not into the domestic production and use. This gives rise to the problem of opportunity cost, that is, if the monetary authority does not hold reserves, it can use these reserve assets to import goods and services, increase the real resources of production, thereby increasing employment and national income, while holding reserves is to give up this benefit. Holding foreign exchange reserves, therefore, takes into account the issue of opportunity cost. Second, the increase in foreign exchange reserves to expand the money supply accordingly, if the foreign exchange reserves are too large, it will increase inflationary pressure and increase the difficulty of monetary policy. In addition, hold too much foreign exchange reserves, may also suffer losses due to the depreciation of foreign currency exchange rates. Therefore, foreign exchange reserves should be maintained at a moderate level. Moderate level of foreign exchange reserves depends on a variety of factors, such as import and export situation, the size of foreign debt, the actual utilization of foreign capital. Should be based on the holding of foreign exchange reserves, cost comparison and the status of these aspects of the foreign exchange reserves to maintain a moderate level
Adoption
Question 6: a country's foreign exchange reserves, what are the benefits of foreign exchange reserves refers to a country's monetary authority holds, can be used for foreign payment of foreign convertible currencies. Not all countries' currencies can serve as international reserve assets, only those in the international monetary system occupies an important position, and can be freely exchanged for other reserve assets can serve as international reserve assets. China and the rest of the world in foreign trade and international settlements in the regular use of foreign exchange reserves are mainly the U.S. dollar, the euro, the Japanese yen, the pound and so on.
A certain amount of foreign exchange reserves is a country's economic regulation, to achieve an important means of internal and external balance. When the balance of payments deficit, the use of foreign exchange reserves can promote the balance of payments; when the domestic macroeconomic imbalance, the total demand is greater than the total supply, you can use foreign exchange to organize imports, so as to regulate the relationship between total supply and total demand, and promote macroeconomic balance. At the same time when the exchange rate fluctuations, you can use foreign exchange reserves to intervene in the exchange rate, so that it tends to stabilize. Therefore, foreign exchange reserves are an essential means to achieve economic balance and stability, especially in the case of economic globalization continues to develop, a country's economy is more susceptible to the influence of the economy of other countries, but more so.
Generally speaking, the increase of foreign exchange reserves can not only enhance the ability of macro-control, but also help to maintain the credibility of the country and enterprises in the international community, and help to expand international trade, attract foreign investment, reduce the cost of financing for domestic enterprises, and prevent and resolve international financial risks. Of course, this does not mean that the more foreign exchange reserves the better, because holding foreign exchange reserves is to pay the price. First, the foreign exchange reserves performance for holding a financial debt expressed in foreign currency, not into the domestic production and use. This gives rise to the problem of opportunity cost, that is, if the monetary authority does not hold reserves, it can use these reserve assets to import goods and services, increase the real resources of production, thereby increasing employment and national income, while holding reserves is to give up this benefit. Holding foreign exchange reserves, therefore, takes into account the issue of opportunity cost. Second, the increase in foreign exchange reserves to expand the money supply accordingly, if the foreign exchange reserves are too large, it will increase inflationary pressure and increase the difficulty of monetary policy. In addition, hold too much foreign exchange reserves, may also suffer losses due to the depreciation of foreign currency exchange rates. Therefore, foreign exchange reserves should be maintained at a moderate level.
Moderate level of foreign exchange reserves depends on a variety of factors, such as import and export situation, the size of foreign debt, the actual utilization of foreign capital. Should be based on the benefits of holding foreign exchange reserves, cost comparisons and these aspects of the situation to maintain foreign exchange reserves at a moderate level to increase foreign exchange, you need to issue yuan to buy the supply of yuan will increase, then the yuan will depreciate, so the exchange rate will fall
Question 7: the amount of foreign exchange reserves on the economy what is the impact of foreign exchange reserves is the reserve of foreign currency or foreign securities. This is a very key element of the economy, and has various effects on the economy.
1 Foreign exchange reserves are needed for foreign trade.
Imported goods, must be paid in foreign currency (usually the dollar, because the dollar is the international currency), foreign exchange reserves are insufficient, imports are limited.
Export goods, surplus, the dollar into the country. Enterprises then go to the bank to exchange a portion of the dollar for domestic purchases or investment. When the amount to be exchanged is huge, the central bank has to issue more yuan for exchange. Excessive issuance of RMB can cause inflation.
2 part of the country's financial revenue is used for investment, part of which is to invest in foreign currencies or securities. For example, the purchase of U.S. Treasury bonds, which increased our foreign exchange reserves. The U.S. financial crisis, which increases the risk of repayment of its national debt. At this time, our foreign exchange reserves are facing such a risk.
3 Foreign currency appreciation will cause foreign exchange reserves appreciation, foreign currency depreciation will cause foreign exchange reserves shrinkage, resulting in the loss of state assets. For example, the United States for debt repayment, a large number of issued dollars, the dollar depreciation, so that although the money back, but the purchasing power has been greatly reduced, foreign exchange reserves shrinkage, loss of state-owned assets.
4 The loss of state-owned assets will lead to a series of economic problems. Some public **** cause is difficult to carry out, such as the original investment in U.S. Treasury bonds to get the money back to join the health care fund, now lost, the people's health care will be a little bit of it, and so on and so forth, all of them.
5 And the public **** cause lagging behind, will be the people's welfare reduced, the people have to pay again out of pocket to pay for these costs, such as health care, pensions, schooling, transportation, communications and so on. This reduces the consumption of other goods, businesses don't make much profit, and workers get paid even less.
6 Consumption, investment, foreign trade to pull the economy of the Troika, two limp, China's gdp can only rely on investment to pick the beam.
Question 8: foreign exchange reserves are good or bad? Foreign exchange reserves refers to a country's monetary authority holds, can be used for foreign payments of foreign convertible currency. Not all national currencies can be used as international reserve assets, only those in the international monetary system occupies an important position, and can be freely exchanged for other reserve assets of the currency can be used as international reserve assets. China and the rest of the world in foreign trade and international settlements in the regular use of foreign exchange reserves are mainly the U.S. dollar, the euro, the Japanese yen, the pound and so on.
A certain amount of foreign exchange reserves is a country's economic regulation, to achieve an important means of internal and external balance. When the balance of payments deficit, the use of foreign exchange reserves can promote the balance of payments; when the domestic macroeconomic imbalance, the total demand is greater than the total supply, you can use foreign exchange to organize imports, so as to regulate the relationship between total supply and total demand, and promote macroeconomic balance. At the same time when the exchange rate fluctuations, you can use foreign exchange reserves to intervene in the exchange rate, so that it tends to stabilize. Therefore, foreign exchange reserves are an essential means to achieve economic balance and stability, especially in the case of economic globalization continues to develop, a country's economy is more susceptible to the influence of the economy of other countries, but more so.
Generally speaking, the increase of foreign exchange reserves can not only enhance the ability of macro-control, but also help to maintain the credibility of the country and enterprises in the international community, and help to expand international trade, attract foreign investment, reduce the cost of financing for domestic enterprises, and prevent and resolve international financial risks. Of course, this does not mean that the more foreign exchange reserves the better, because holding foreign exchange reserves is to pay the price. First, the foreign exchange reserves performance for holding a financial debt expressed in foreign currency, not into the domestic production and use. This gives rise to the problem of opportunity cost, that is, if the monetary authority does not hold reserves, it can use these reserve assets to import goods and services, increase the real resources of production, thereby increasing employment and national income, while holding reserves is to give up this benefit. Holding foreign exchange reserves, therefore, takes into account the issue of opportunity cost. Second, the increase in foreign exchange reserves to expand the money supply accordingly, if the foreign exchange reserves are too large, it will increase inflationary pressure and increase the difficulty of monetary policy. In addition, hold too much foreign exchange reserves, may also suffer losses due to the depreciation of foreign currency exchange rates. Therefore, foreign exchange reserves should be maintained at a moderate level. Moderate level of foreign exchange reserves depends on a variety of factors, such as import and export situation, the size of foreign debt, the actual utilization of foreign capital. Should be based on the holding of foreign exchange reserves, cost comparisons and the status of these aspects of the foreign exchange reserves to maintain a moderate level.
Incidentally, China's foreign exchange reserve management:
June 12, 2014, the Foreign Exchange Bureau, Huang Guobo, chief economist and Balance of Payments Director Guan Tao accepted China *** net interview, interpretation of China's foreign exchange reserve management.
Some netizens asked what should be done if there are too many foreign exchange reserves? How to change this situation?
Guan Tao, Director of the Balance of Payments Department of the Foreign Exchange Bureau, said that this question can be answered from the following aspects. First of all, China *** has long been clear not to pursue the more foreign exchange reserves the better, foreign exchange reserves increase or decrease reflects a country's balance of payments situation. At the end of 2002, the 16th Party Congress for the first time to maintain the balance of payments as one of the four major objectives of macro-control. 2006 end of the Central Economic Work Conference clearly pointed out that China's balance of payments of the main contradiction has been changed from a shortage of foreign exchange to a trade surplus is too large, the foreign exchange reserves are growing too fast. Therefore, the main thing we have done in these years is to "adjust the structure, expand domestic demand, reduce the surplus, promote balance", China *** has been working in this direction, we see that this policy has played a certain effect, trade in goods, trade in services-based current account surplus as a proportion of GDP, the highest in 2007 was 10.1%, and in recent years, the current account surplus has increased to 10.1%, and in recent years, the current account surplus has increased to 10.1%. 10.1%, in recent years has been reduced to about 2%, far below the internationally recognized reasonable standard of the current account balance as a proportion of GDP, showing that the external balance of our economy and the improvement of the balance of payments situation has achieved great results.
Question 9: What are the adverse effects of having too much national foreign exchange reserves? Generally speaking, the increase in foreign exchange reserves can not only enhance the ability of macro-control, but also conducive to the maintenance of the country and enterprises in the international credibility, help to expand international trade, attract foreign investment, reduce the cost of financing domestic enterprises naive to prevent and resolve international financial risks. Of course, this does not mean that the more foreign exchange reserves the better, because holding foreign exchange reserves is to pay the price. First, the foreign exchange reserves are expressed as holding a financial debt expressed in foreign currency, not into domestic production and use. This gives rise to the problem of opportunity cost, that is, if the monetary authority does not hold reserves, it can use these reserve assets to import goods and services, increase the real resources of production, thereby increasing employment and national income, while holding reserves is to give up this benefit. Holding foreign exchange reserves, therefore, takes into account the issue of opportunity cost. Second, the increase in foreign exchange reserves to expand the money supply accordingly, if the foreign exchange reserves are too large, it will increase inflationary pressure and increase the difficulty of monetary policy. In addition, hold too much foreign exchange reserves, may also suffer losses due to the depreciation of foreign currency exchange rates. Therefore, foreign exchange reserves should be maintained at a moderate level.
Question 10: foreign exchange reserves more good or less good For the general economy (refers to the overall size of the economy is not large), especially for developing countries is naturally the more the better, like our bosses surnames, bank deposits is naturally the more the better;
But for the United States, such as the absolute strength of the economy, especially when the economic and military scale of a country are in the absolute lead level
But for an economy as strong as the United States, especially when a country's economy and military size are at the top of the heap, a quote from Prof. Hampson:
"The key to a country is to look at the overall economic water quality and overall competitiveness, the foreign exchange reserves are not very useful, you have who see how many foreign exchange reserves the United States, as we all know, the United States is the world's largest debtor, borrowing money to live in the world, but they do not live a quite nourished! "
So, the development of the economy is the hard way. With money, advanced technology and military power, everything is fine.