The so-called international reserves (foreign exchange reserves) make up for the balance of payments deficit means that in order to maintain the stability of the domestic currency exchange rate, foreign exchange reserves can make up for the balance of payments deficit, thus achieving the effect of stabilizing the exchange rate.

Foreign exchange reserve is a reservoir. When there is a surplus in the balance of payments, it can be converted into foreign exchange reserves, and when there is a deficit in the balance of payments, it can be made up by releasing foreign exchange reserves.

The foreign exchange reserve market cannot change the balance of payments.

Balance of payments mainly includes balance of payments under trade, that is, balance of payments under capital and finance. The balance of payments under trade is related to a country's trade in goods and services, and the exchange rate has a great influence on the balance of payments. Income and expenditure under capital and finance are closely related to a country's interest rate level, economic development level and exchange rate control.