International reserves refer to internationally recognized assets held by a country's monetary authorities to make up for the balance of payments deficit, stabilize its currency exchange rate and deal with emergency payments. Including monetary gold, foreign exchange reserves, international monetary fund reserve positions and special drawing rights. Since foreign exchange reserves account for more than 95% of non-gold reserves, the management of international reserves is essentially the management of foreign exchange reserves. A country should comprehensively weigh the benefits and costs of holding foreign exchange reserves and maintain a moderate scale of foreign exchange reserves. If a country's foreign exchange reserves are too low to meet the needs of its foreign trade and foreign economic exchanges, it will cause an international payment crisis and even a financial crisis. If a country has too many foreign exchange reserves, it will increase the opportunity cost of holding reserves (giving up the opportunity to buy goods and services with reserves), occupy more base currency, lead to excess liquidity and bring negative effects to a country. In order to reduce the exchange rate risk, a country can consider establishing a reserve currency structure consistent with the currency needed to make up the deficit and intervene in the market, or diversifying the reserve currency.