The rapid outflow of domestic funds from foreign markets will lead to a rapid decline in the exchange rate of local currency and a rapid appreciation of foreign currency, so it is impossible to draw the conclusion that foreign exchange reserves are decreasing.

In the international financial market, financial speculators who make money by buying and selling other countries' currencies decide to buy and sell according to the relationship between supply and demand of currencies.

The flow of domestic currency to the international market means that the supply of domestic currency exceeds demand and the domestic currency depreciates. Foreign currency holders only need to exchange their own currency at a lower exchange rate.