I don't think there is any way to hold a large amount of foreign exchange reserves. The purpose is to avoid the pressure of RMB appreciation and avoid American inflation. If the United States inflates, the dollar will be worthless.

One dollar equals one yuan, and by that time, the RMB will appreciate 6.8 times compared with the current exchange rate. In this way, a large number of imported products will enter China, and the price will be cheap; Will crush domestic products and enterprises. Domestic product export is unprofitable; Americans will definitely buy their own products at the same price; Therefore, we must avoid inflation in the United States; Buy all their money back to the first party, and there will be no inflation in America. The previous problems have also been avoided.

My personal understanding is this. Please correct me if there is anything wrong.