Abstract: “It is an important issue of improving the structure of foreign exchange reserves. We discuss the issue of foreign exchange reserves security from the perspective of structural optimization. For Chinese authorities, five aspects of adjustment mechanisms, namely currency composition optimization, assets scale adjustment, investment structure improvement, collaborative management between reserves and foreign debts and investment term structure rationalization, should be comprehensively used to mitigate risks accompanied by the continued accumulation of huge foreign exchange reserves.”

Keywords: Foreign Exchange Reserves, Security, Structural Optimization