First of all, translate it in human words as usual. What exactly are foreign exchange reserves?

According to the official definition, foreign exchange reserves refer to foreign exchange assets held by central banks and other government agencies to meet the needs of international payment.

This sentence may still be difficult to understand. Let's give an example to explain. We often say that landlords have no surplus grain! So in fact, foreign exchange reserves are equivalent to the surplus grain of the landlord's family. Suppose China is a rich landlord. He usually earns a high income, but he is good at managing money and won't spend it indiscriminately, so all his money is saved. If necessary, use the money saved. This is the most popular explanation for foreign exchange reserves.

Then where did so many foreign exchange reserves in our country come from?

Money will not be created out of thin air, nor will China's foreign exchange reserves be created out of thin air. In a sense, China's foreign exchange reserves are part of the wealth created by China people's hard work.

Second, what impact will the reduction of foreign exchange reserves have on us ordinary people?

I believe friends who are concerned about China's economy should remember that once upon a time, China's foreign exchange reserves were huge. In 20 14, China's foreign exchange reserves reached 4 trillion. At that time, many people actually complained that there were too many foreign exchange reserves. However, in less than three years, the phenomenon of more money that once worried us has not only disappeared, but also less money. How much is missing? A whole trillion dollars!

Less is nothing, but less than one trillion is probably a problem that no one can ignore. So what does it mean for us ordinary people to reduce foreign exchange reserves so much?

First, everyone will have less money.

Some time ago, we were worried that "Li Ka-shing has escaped" and "Cao Wangde has escaped". These so-called rich people ran away, which is an important reason for the decrease of China's foreign exchange reserves, because they all invested their domestic money abroad.

Second, it is more difficult to make money.

In fact, why do foreign exchange reserves decrease and capital flow out? In some ways, it is because China lacks suitable investment products, saying that the stock market and the stock market are depressed, saying that the bond market and the bond market had a big problem last year, saying that basically whoever buys a fund will lose money, so only buying a house has given birth to the rise of real estate prices.

Third, the operation of enterprises may become difficult.

Because of the decrease in foreign exchange, capital has slipped away, which means stricter foreign exchange management for import and export enterprises. For domestic enterprises, it is not only difficult to borrow money, but also less investment, and the operation of enterprises will face greater uncertainty.