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.