SincethereformandopeningofChina'sforeignexchangemanagementsystemoccurredseveralmajorchange,astheworld'sthirdlargesteconomyandhasapopulationof1.3billionhugepotentialmarketofChina,consumptioneveryforeignexchangemanagementstrategyofchangearethefocusofattentionofthecountriesaroundtheworld,worldtradepartnersandinvestmentshangdueagerattentiontoChina'sforeignexchangemanagementstrategyofeverychange.Financialcrisis,China'sforeigncurrencyreservesencountersunprecedentedhit,asthecrisisspreadanddeepening,China'sforeignexchangemanagementstrategiesalsohasacorrespondingchangetomaintainnationalfinancialstabilityandeconomicsecurity,eachmovealsoaffectsthepulseoftheworldeconomy,inforeignexchangemanagementstrategyofchange,onlyusechannelstoexpandforeignexchangereservesmanagementinsolvetheexistingproblems.ByMarch2008,China'sforeignexchangereservesbalancehasreached16821.77billiondollars.MassiveforeignexchangereservestoChina'smacroeconomicoperationbringsomenegativeeffect.Thispaperdiscussesthecurrentsituationofforeignexchangereservesanditscausesareanalyzed,andpointsoutthatthetradesurplusandforeignliquidityiscurrentlyaninfluxofforeignexchangereservesthemaincauseofthatgrowth.Basedonanalyzingtheadvantagesanddisadvantagesofmassiveforeignexchangereserves,andputsforwardsomepolicySuggestionstostrengthenthemanagementofforeignexchangereserves.
Keywords:foreignexchangereserveseconomicgrowthnationalsecuritystrategy