China's foreign exchange reserves reached $3.94 trillion at the peak of 20 14. What is the concept of this number? In the same year, the second-ranked Japanese foreign exchange reserves were only $65,438 +0.2 trillion, while the third-ranked Saudi Arabia only had more than $600 billion, and the second and third places were only half that of China. This shows how big this number is.

A country has a surplus in foreign trade, which is called current account surplus. Attracting foreign investment more than foreign investment is called capital account surplus. If both the current account and the capital account have surpluses, the country's foreign exchange reserves will grow steadily. Take 20 14, the year with the highest foreign exchange reserves, for example, the current account surplus in this year alone reached more than $380 billion, a year-on-year increase of 47%. More importantly, during the period of rapid growth of China's double surplus (2004 -20 14), the RMB has been appreciating against the US dollar. The constantly appreciating RMB not only attracts the inflow of international hot money, but also creates foreign exchange, which is willing to be converted from the central bank into RMB. This has led to the rapid growth of China's foreign exchange reserves.