First of all, the reserve management department under the State Administration of Foreign Exchange is the institution that manages China's foreign exchange reserves, and the main sources of funds are the Ministry of Finance and the monetary authorities (the central bank). The Ministry of Finance puts very little money in the reserve management department, and its function lies in some expenses that need to use foreign currency; The foreign exchange reserves we are talking about are mainly the foreign exchange deposit reserves approved by the central bank, and the foreign exchange reserves mentioned later are all the foreign exchange deposit reserves of the central bank. So the government has no influence on this matter (or nobody cares about the money of the Ministry of Finance).

Second, there are great differences between the government and the monetary authorities. The net assets of the government belong to taxpayers, while the monetary authorities have no net assets. The assets of the monetary authorities are all derived from liabilities (RMB is the white note of the central bank). If you look at the balance sheet of the central bank, you will know that there are only two items: "assets" and "liabilities", without "owners' equity", the net assets will always be zero. Therefore, no matter how safe operates, there is no so-called gain for the central bank. However, although the net assets remain unchanged, the assets have changed, and the assets of the monetary authorities affect the supply of social "base money". To put it simply, the "profit" of safe is to reduce the growth rate of domestic inflation.

Third, a completely free market has no foreign exchange reserves, so it is good for others to trade on their own. The purpose of maintaining huge foreign exchange reserves is to stabilize the currency value, more specifically, to stabilize the profits of export enterprises. This is at the expense of inflation and the contribution of the whole country, that is, the state covers some enterprises. The reason for this is that once these enterprises go bankrupt, the impact on ordinary people will exceed the current inflation.

To put it simply, under the existing circumstances, the appreciation of RMB will cause importers to gain, exporters to lose, and the net assets of the central bank will remain unchanged, while the net assets of the government will remain unchanged, thus reducing the increase of national inflation.