An AHP-based Foreign Exchange Reserves Currency Selection Model for China
With the fast build-up of Chinese foreign exchange reserves, the risk management becomes a huge problem to the Chinese central bank. In this paper we present a model which can be used to help decision makers select a suitable currency structure based on Analytic Hierarchy Process (AHP) that allows both the economic demand and risk control factors to be taken into account. The model presented here recommends currency allocation and identifies the most suitable percentages among USD, Euro, Pound and Japanese Yen, consistent with the needs of trade settlement, debt repayment and risk control. The results indicate that the Chinese central bank should hold diversified currencies. The model can help the central banks analysts to work better and will significantly improve the professionalism in the management on the foreign exchange reserves.
AHP foreign exchange reserves currency structure
Xiaodong Huang
School of finance, Zhejiang Gongshang University Hangzhou, China
国际会议
成都
英文
575-579
2010-12-17（万方平台首次上网日期，不代表论文的发表时间）