Current location - Loan Platform Complete Network - Foreign exchange account opening - Does the central bank use RMB to buy foreign exchange from domestic holders, which increases the money supply and inflationary pressure?
Does the central bank use RMB to buy foreign exchange from domestic holders, which increases the money supply and inflationary pressure?
Theoretically, yes.

The increase of currency in circulation will inevitably lead to the increase of currency pressure.

It will also lead to the appreciation of the renminbi.

But if the government macro-control. It is also a clever way to buy foreign products with this part of foreign currency.

Since the depreciation of foreign currency and the large domestic foreign currency holdings can stimulate a large number of imported goods (including crude oil, minerals and scarce resources in China) to increase the supply, will it reduce the inflationary pressure or maintain a relative balance (within the controllable range) accordingly, so that the national economy will continue to grow, but the use of domestic resources will decrease? It is also a move to benefit the people. If the dollar does not depreciate, it will be a trade surplus, but China's massive resources and labor force will become a worthless currency symbol-the dollar.

By doing so, the government has maintained a sustainable and stable development.

What market economy needs most is balance.