The Empirical Analysis of the Optimal Proportion for U.S. Dollar Reserves Among China's Foreign Exchange Reserves
Based on the end of 2009 statistical data,China's foreign exchange reserves have reached about 2300 billion U.S.dollars,which ranks the first in the world and affects the stability of the balance of payments and foreign exchange market.It is clear that the analysis of the optimal proportion for U.S.dollar reserve is crucial in China.This essay will start by analyzing the main factor of affecting U.S.dollars reserves earnings and then apply regression and portfolio model to the problems.Finally,it will get the optimal ratio range of our foreign exchange reserve and put forward the recommendation on the optimal ratio range of our US dollar reserve.