IDEAS home Printed from https://ideas.repec.org/a/bla/chinae/v14y2006i2p56-66.html
   My bibliography  Save this article

Rethinking Fast Growth in China's Foreign Exchange Reserves

Author

Listed:
  • Yuanlong Wang

Abstract

The sustained surpluses in the current and capital accounts of balance of payments are the main reason for the continuing rapid expanse of China's foreign exchange reserves in recent years. However, flaws in the formation of the renminbi exchange rate regime are the institutional root cause of the sustained high growth in foreign exchange reserves. Various theoretical misconceptions about the scale of foreign exchange reserves have swayed policies and contributed to its sustained fast growth. Sustained high growth of China's foreign exchange reserves, and its extraordinary large scale, carry tremendous risks. Because the security of foreign exchange reserves affects a country's financial safety, China urgently needs to adjust its foreign exchange reserve policies. Edited by Zhinan Zhang

Suggested Citation

  • Yuanlong Wang, 2006. "Rethinking Fast Growth in China's Foreign Exchange Reserves," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 14(2), pages 56-66, March.
    • Handle: RePEc:bla:chinae:v:14:y:2006:i:2:p:56-66
    DOI: 10.1111/j.1749-124X.2006.00015.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1749-124X.2006.00015.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1749-124X.2006.00015.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nguyen, Vu Hong Thai & Boateng, Agyenim, 2015. "Bank excess reserves in emerging economies: A critical review and research agenda," International Review of Financial Analysis, Elsevier, vol. 39(C), pages 158-166.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:chinae:v:14:y:2006:i:2:p:56-66. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iwepacn.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.