Foreign exchange reserves are monetary assets owned by a country that can be used for international repayment, including: freely convertible currencies, gold, IMF special drawing rights, etc. It is not m2 or m3, but it can be converted into m 1, m2 or m3. For example, if a country wants to reduce the scale of foreign exchange reserves, it can sell some of its foreign exchange reserves in the international market in exchange for local currency and put them on the market. If the money has been directly invested, it will be converted into M 1, and if it is deposited into the demand deposit of a commercial bank, it will be converted into M2. ...