Growth of China's foreign exchange reserve

Zhang Shuguang and Zhang Bin

China Economic Journal, 2008, vol. 1, issue 1, 53-62

Abstract: China's growing foreign exchange reserve is estimated to exceed $2 trillion by 2010. The purpose of its paper is to examine its impact on the balance sheet of the Chinese central bank, the money supply and the bond market. The paper will then move on to discuss its social welfare effect by comparing the estimated future return of the foreign exchange reserves with its opportunity costs measured by the potential return of domestic investments.

Date: 2008
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DOI: 10.1080/17538960701564874

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