Implications of source structure changes of foreign exchange reserves for monetary policy

The rapid growth of foreign exchange reserve has profound influence on the monetary policy in our country, but not only the aggregate scale should be focused when discussing foreign exchange reserve, it is more significant to analyze its source structure in details. In this paper, the influence on monetary policy from the source structure alteration of foreign exchange reserve is analyzed from the aspects such as current account balance, capital account balance, net errors and omissions, direct investment balance and foreign debts balance. And then the suggestion of reforming some correlated aspects is offered.