What does it mean to sell or buy foreign exchange reserves in order to maintain exchange rate stability?
In fact, foreign exchange conforms to the law of value just like ordinary commodities. The more you sell, the lower the price, and the more you buy, the higher the price. This is the simple fact. Therefore, when the foreign exchange reserves are thrown out, the foreign exchange price will decrease (relative to the domestic currency), which is equivalent to the appreciation of the domestic currency. Buying is the opposite.