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

Figure 4

Analysis of China’s purchase of US bonds. (a) The amount of purchased bonds (unit: billion). (b) Proportion of foreign exchange reserve for buying the bonds (averaged value: 0.4, the horizontal line). (c) Interest rates of 6-month US government bonds (averaged value: 3, the horizontal line). (d) Interest rate of corporate bonds with Aaa rating (averaged value: 5.69, the horizontal line).

(a)

(b)

(c)

(d)