It is not that China has a large amount of foreign exchange, so the RMB will appreciate, but that China has promoted the appreciation of the RMB in the process of owning these foreign currencies. China's exchange rate formation mechanism is a managed floating exchange rate system based on market supply and demand with reference to a blue sub-currency. Adjustment is carried out by the market. Before the opening of the foreign exchange trading market every day, the market maker quotes the price, and after weighted calculation, the central parity of the foreign exchange rate of that day is obtained and announced. Both the foreign exchange trading market and the foreign exchange counter trading refer to the middle price and trade in the range of 1%. There are many influencing factors, the most important of which are: the development of export-oriented economy, the demand of foreign exchange market, political factors, information influence and so on.