Foreign exchange reserve refers to the foreign exchange part of the international reserve assets held by a government, that is, the creditor's rights held by a government in foreign currency. 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. Now, China's foreign exchange reserves have surpassed the G7 combined, ranking first in the world! The advantage is that more foreign exchange is conducive to resisting risks. For example, the coming of the financial storm can avoid risks. But the disadvantage is that when your foreign currency depreciates, your assets shrink. In this way, every time the dollar depreciates by 1%, China will lose more than 3 billion RMB!

At present, our country encourages citizens to hold more foreign currency in their hands, and discourages the existence of domestic banks.