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Why does the trade surplus cause inflation? What are foreign exchange reserves?
The trade surplus led to a large amount of foreign currency flowing into China, that is, the increase in RMB, which made the supply of goods in short supply and led to inflation.

Generally speaking, there is 100 yuan in the market. Originally, a textbook sold for 5 yuan. Now there is a sudden increase of 1000 yuan in the market, and the price of nature textbooks is going up.

Foreign exchange reserve, also known as foreign exchange reserve, refers to the foreign exchange part of the international reserve assets held by a government, that is, the creditor's rights held by a government in foreign currency. It is an asset held by the national monetary authority and can be converted into foreign currency at any time. In a narrow sense, foreign exchange reserve is an important part of a country's economic strength, and it is a foreign exchange accumulation used by a country to balance international payments, stabilize exchange rates and repay foreign debts. Broadly speaking, foreign exchange reserves refer to assets denominated in foreign exchange, including cash, foreign bank deposits and foreign securities. Foreign exchange reserve is an important part of a country's international liquidity, which has an important influence on balancing international payments and stabilizing exchange rate.