Theoretically, the monetary value of a country is determined by its gold reserves. The higher the gold reserve, the stronger its monetary value. Assuming that China's gold reserve is a fixed factory, China's foreign trade surplus year after year leads to China's increasing foreign exchange reserve. Although foreign exchange reserves are not gold, their functions are equivalent to gold reserves. There is a simple reason. With foreign exchange reserves, we can buy gold directly as reserves. Therefore, the higher the foreign exchange reserves, the higher the value of RMB in China.