Research on how to optimize the structure of China's foreign reserve

  • Ma Jie*
  • , Li Lei
  • *Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

To improve the operation efficiency of the Chinese foreign reserve, the true difficulty is to set scientific standards for the dynamic adjustment of the foreign reserve. This paper incorporates the CVaR model into the framework of "Risk-Return", and constructs a new programming model on the currency composition of China's foreign reserves. Based on the model we found and applying the monthly data during 2005.1~2009.7, we analyze the currency structure of the China's foreign reserve, and derive the optimal currency weights in different scenarios. According to the empirical analysis results, along with the international finance theory and the factual status, we confirm the availability of the new model.

Original languageEnglish
Title of host publicationAdvanced Technology in Teaching - Selected Papers from the 2012 International Conference on Teaching and Computational Science, ICTCS 2012
Pages693-701
Number of pages9
DOIs
StatePublished - 2012
Event2012 International Conference on Teaching and Computational Science, ICTCS 2012 - , Macao SAR
Duration: 1 Apr 20122 Apr 2012

Publication series

NameAdvances in Intelligent and Soft Computing
Volume163 AISC
ISSN (Print)1867-5662

Conference

Conference2012 International Conference on Teaching and Computational Science, ICTCS 2012
Country/TerritoryMacao SAR
Period1/04/122/04/12

Keywords

  • Conditional Value-at-Risk
  • Convex optimization
  • Foreign reserve
  • Structure management

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