Adequate foreign exchange reserves are of great significance to China's economic security.
1 is conducive to persisting in reform and opening up and promoting the sustained and stable economic development of China. We should be soberly aware that China is still a big developing country, and China's economy still faces many difficulties and problems that need to be solved urgently. In terms of per capita foreign investment and per capita foreign exchange reserves, China ranks very low in the world. Although we are now called a big trading country, we are far from being a big trading country. For a long time to come, opening to the outside world and attracting foreign investment will remain one of our basic national policies. With abundant foreign exchange reserves, foreign investors all over the world can be reassured and a steady stream of foreign capital can be attracted to continue to invest in China, especially in the central and western regions.
2. It is conducive to ensuring national financial security and preventing and resisting financial risks. According to the commitments made when joining the WTO, China's financial services have been fully opened to the outside world. This is not only an opportunity for China's financial services industry to integrate into the global economy, but also because of the accumulation of various historical problems, China's financial industry is facing considerable risks as well as challenges. China's foreign exchange reserves have exceeded the 1 trillion dollar mark, which fully shows that China has sufficient international payment capacity. In addition, China's foreign exchange reserves are gradually diversified, including China's massive purchase of US Treasury bonds, which provides an effective protective barrier for us to guard against all kinds of unpredictable risks, rebuild the financial system and prevent economic crisis.
3. It is conducive to maintaining and consolidating China's international economic status and international influence as a big country. Foreign exchange reserves are not only the accumulation of a country's wealth, but also the embodiment of a country's comprehensive national strength, economic strength and economic status. From the early border trade to the RMB settlement of regional trade, until today, the "free circulation" of RMB in Hong Kong, Macao and Taiwan and many parts of the world is based on China's abundant foreign exchange reserves.