1. Price rise: When foreign exchange reserves rise, the central bank will hedge by increasing the base currency. The increase in money supply will lead to excess domestic liquidity, so prices will rise accordingly. Rising prices may lead to inflation and devalue the money in the hands of ordinary people. However, the state will generally take corresponding control measures to stabilize prices.

2. Increased pressure of RMB appreciation: The huge trade surplus is one of the main reasons for the rise of foreign exchange reserves. China has a trade surplus, which means that the other country has a trade deficit, the balance of payments is unbalanced, and trade friction is increasing. In order to safeguard their own interests, the trade deficit side will inevitably demand the appreciation of RMB to curb China's exports.

3. Enhance international reputation: Foreign exchange reserves are an important symbol of a country's comprehensive national strength. The increase of foreign exchange reserves can improve China's international reputation, and at the same time, it can also improve China's external financing ability and promote the development of domestic economy.