Foreign exchange reserves are an important factor affecting the value of RMB. Most of the foreign exchange reserves held by a country come from foreign investment. When a country's foreign exchange holdings increase, relatively speaking, in order to maintain balance, the demand for RMB in the foreign exchange market will increase, thus causing pressure for RMB appreciation. Of course, the RMB exchange rate also depends on other indicators such as the amount of money and credit, prices, economic growth rate, etc., and there is a basis for two-way fluctuation of the RMB exchange rate.