Foreign exchange reserves, also known as foreign exchange reserves, are assets held by a country's monetary authorities and can be converted into foreign currencies at any time. Not all national currencies can be used as international reserve assets. Only those currencies that occupy an important position in the international monetary system and can be freely converted into other reserve assets can be used as international reserve assets.

In a narrow sense, foreign exchange reserves refer to a country's foreign exchange accumulation; Broadly speaking, foreign exchange reserves refer to assets denominated in foreign exchange, including cash, gold and foreign securities.

Foreign exchange reserve is an important part of a country's international liquidity, which has an important influence on balancing international payments and stabilizing exchange rate.

China and other countries in the world often use foreign exchange reserves in foreign trade and international settlement, mainly including US dollars, euros, Japanese yen, British pounds and so on.

Personally, foreign exchange reserves are determined by foreign trade of enterprises, exchange rate settlement, personal use of foreign exchange, national balance of payments and other factors. To put it bluntly, a certain amount of foreign exchange is converted into local currency through the state, and the state spends its own currency to earn foreign exchange, forming foreign exchange reserves, and then maintaining and increasing the value by purchasing foreign national bonds.

Please refer to the following website for specific knowledge:

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