On May 3 1, the People's Bank of China raised the foreign exchange deposit reserve ratio of financial institutions by 2 percentage points, mainly in the face of recent market conditions, in order to ease the pressure of RMB appreciation, but it also means that the space for releasing liquidity from foreign exchange holdings is compressed. The central bank did not increase liquidity through foreign exchange holdings, indicating that the central bank is not prepared to relax monetary policy in response to RMB appreciation, and the possibility of monetary policy turning loose in the short term is low.