China's foreign exchange reserves have maintained a rapid growth since 2008, as of the end of 2003, the country's foreign exchange reserves have reached $1946000000000. Such a large sum of foreign exchange reserves is our long-term trade surplus, inflows of "hot money", and China's compulsory settlement system causes. Of course, the increase in foreign exchange reserves is an important manifestation of a country's sustained and rapid economic growth, but the current number of China's foreign exchange reserves has exceeded the reasonable needs, to China's foreign exchange reserves security has brought great challenges, and it is likely to lead to inflation, and so on. Therefore, China should adjust the structure of foreign exchange reserves as soon as possible, try to take the international route, as well as the increase of foreign exchange reserves and other measures to ease its adverse effects.