What is foreign exchange reserve? What is the difference between foreign exchange holdings and foreign exchange reserves? Foreignexchangereserve, also known as foreign exchange reserve, refers to foreign exchange assets held by central banks and other government agencies to meet the needs of international payment.

The specific forms of foreign exchange reserves are short-term government deposits overseas and other means of payment that can be realized overseas, such as foreign securities, checks from foreign banks, promissory notes and foreign exchange drafts. They are mainly used to repay the balance of payments deficit, intervene in the foreign exchange market and maintain the exchange rate of their own currencies.

Fundsoutstanding (national currency. As the RMB is a non-convertible currency, foreign capital needs to be converted into RMB to enter circulation. The state invests a lot of money in foreign exchange, which requires the state to buy foreign exchange in its own currency, thus increasing the money supply and forming foreign exchange occupation.