Foreign exchange deposit reserve refers to a certain proportion of foreign exchange deposits absorbed by financial institutions (usually banks) from the central bank for savings, similar to the deposit reserve ratio, which refers to the ratio of foreign exchange deposit reserves paid by financial institutions (banking institutions) to foreign exchange deposits absorbed by them.

The central bank generally uses the foreign exchange reserve rate to adjust the RMB exchange rate. When RMB appreciates, it will increase the foreign exchange reserve rate, while when RMB depreciates, it will decrease the foreign exchange reserve rate.