What will happen if you sell a lot of foreign exchange reserves?
China's foreign exchange reserves are dominated by US dollars, mainly because the US dollar is the only recognized world currency in the world today. If a large number of dollars are sold and the market accepts a limited amount, it will lead to a sharp depreciation of the dollar and an impact on the dollar economy. On the other hand, it will lead to the appreciation of RMB and stimulate the rise of domestic prices.