A New Cost-Profit Model for Measuring the Optimal Scale of China’s Foreign Exchange Reserve

Figure 2

Relationship between import, debt, and foreign exchange reserve. (a) Foreign exchange reserve (unit: billion). (b) The import of each year in China (unit: billion). (c) Growth rate of foreign import (unit: %). (d) Ratio of 20% of import to foreign exchange reserve. The horizontal line is the averaged ratio, 8% (source: statistical database of the Chinese economic network). (e) Debt of each year in China (unit: billion). (f) Ratio of 30% of debt to foreign exchange reserve. The horizontal line is the averaged ratio, 15% (source: Chinese State Administration of Foreign Exchange).

(a)

(b)

(c)

(d)

(e)

(f)