In a certain period of time, the total amount of money held by one country in another country is fixed, and at this time, the total amount of money held by another country is also fixed, so the proportion of foreign exchange held by that country in the total amount of money of another country is also certain. At this time, the value of the total amount of money held by the other country depends on the total value of the current tradable goods or wealth in the country, so the total amount of social wealth that the foreign exchange of the country can control is fixed. When a foreign exchange issuing country issues a large number of domestic paper money to dilute its purchasing power, it does not obtain a new currency with the same proportion according to the proportion of the original currency to its total currency, so the proportion of its own foreign exchange holdings in its total currency will decline, while the total value of its tradable goods or wealth will remain unchanged, so the total amount of social wealth it can control will decrease. At this time, the currency issuer will generate exchange gains, while the foreign exchange holders will generate exchange losses, which will gradually produce loss effects with the spread of the other currency. Its principle is like the 100 yuan bill in our hands, but the purchasing power has dropped unconsciously. Since the founding of the People's Republic of China more than 60 years ago, because of hoarding foreign exchange, the cost of producing export commodities by export enterprises has to be compensated. In the case of inflation, the greater the export volume, the greater the base of domestic foreign exchange holdings in the total currency of foreign exchange issuing countries, which leads to the domestic wealth export deficit and huge exchange losses in foreign exchange holdings, which not only drags down state-owned enterprises, but also destroys China's independent banking system, making enterprises and banks rely on devouring shareholders' wealth to make up for their exchange losses, thus maintaining the difficult operation of enterprises and banks.