The original 8 yuan RMB can be exchanged for $65,438 +0. If it appreciates, it will be more valuable than before, so now 7 yuan RMB can be exchanged for 1 USD. So far, foreign exchange refers to dollars (the whole world is settled in dollars). In the past, a dress cost 8 yuan. Suppose it is still 8 yuan now. In the past, Americans could buy this dress for 1 USD, but now they need more than 1 USD to buy it. If Americans think it's expensive and don't buy it, then China's clothes won't be sold in the United States, and its exports will decrease, so it won't make American money or US dollars.

Originally, clothes worth 1 USD in the United States were sold to China, and China people could buy them for 8 RMB.

At present, American clothes worth 1 USD are sold to China, and China people can buy them for 7 yuan. People in China think American things are cheaper. Can America sell more clothes? Then American exports will increase. China will buy their things in dollars, and China's national treasury will have so many dollars, which will be reduced a little.

The superposition of the first two situations is the reduction of foreign exchange reserves.