For a long time, the US dollar has been an international currency, and foreign trade settlement is conducted in US dollars. Due to China's foreign exchange control and the foreign exchange policy of keeping a close eye on the US dollar, a large amount of foreign exchange exported by China has been converted into RMB for domestic circulation, which has aggravated domestic inflation. For example, for example, a foreign-funded enterprise exports US$ 6.5438+0 million of goods to the United States and gains US$ 6.5438+0 million of foreign exchange. If they want to be used in production, they must be converted into RMB, which led to the issuance of 6.8 million RMB in China. At present, China's foreign exchange has reached US$ 2 trillion, which is equivalent to issuing RMB 65.438+36 billion to China at the exchange rate of 6.8: 654.38+0. This wealth is not in kind, but in foreign exchange, which leads to inflation.

If RMB is used for settlement, other countries will reserve RMB, which can effectively reduce and transfer domestic inflation.