There are two main sources of foreign exchange in China, one is trade projects, and the other is capital projects. Trade account refers to the foreign exchange earned by the export of all products and services, and capital account refers to all foreign investment. Foreign investment should bring in foreign exchange. When these two foreign currencies come in, they must be converted into RMB and deposited in your RMB account, and then converted into foreign currencies when necessary. Then the foreign currency exchanged by commercial banks with RMB constitutes a country's foreign exchange reserves. It is only the equivalent foreign exchange form of RMB in the hands of export enterprises and foreign businessmen.

A country's foreign exchange reserve is only the equivalent foreign exchange form of RMB in the hands of export enterprises and foreign businessmen. The country wants to use it and exchange it with RMB, and behind the RMB is also the monetary embodiment of wealth creation.