Foreign exchange reserves, also known as foreign exchange reserves, refer to foreign exchange assets held by central banks and other government agencies to meet the needs of international payment.

There are many reasons for the decrease of China's foreign exchange reserves, including exchange rate stability, capital outflow and book value changes. Foreign exchange reserves are mainly affected by the balance of payments. The main reasons for China's current high foreign exchange reserves are the persistent trade surplus and foreign capital inflow.

Recently, with the economic downturn in China and the outflow of foreign capital, the central bank's RMB was changed into US dollars, leaving China, and the foreign exchange reserves were reduced. At the same time, in order to prevent the RMB from depreciating too quickly, the Bank of China will sell dollars in the foreign exchange market to buy RMB, which will also consume the foreign exchange reserves of the central bank.