Modern Economics & Management Forum

Through the understanding of foreign exchange reserves and the understanding of China’s foreign exchange reserve management issues, this article establishes an econometric model to explore the factors that affect China’s foreign exchange reserves, analyzes China’s deficiencies in foreign exchange reserve management, and puts forward suggestions for improvement.^[1] The study found that at this stage, China’s foreign exchange reserves are large in scale, the dollar’s share of foreign exchange reserves is adjusted year by year, and there is a large amount of room for improvement in earnings influences. Therefore, this article puts forward suggestions for the management of foreign exchange reserves according to the actual situation. The aim is to increase the strength and effectiveness of the management of foreign exchange reserves. This article will have a certain enlightening effect on the management of foreign exchange in China.