Secondly, foreign exchange has many uses, such as buying foreign resources, high technology, new products, bulk products, national debt and so on. . . . . . . . . . . A few, a few
In recent years, China has been increasing its imports, especially in some high-tech and cutting-edge equipment. The foreign exchange is used in the right place.
For the development of domestic economy, a large number of basic resources and bulk products have been imported and must be used as raw materials.
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If China exports too much, it will have a surplus. If it doesn't use foreign exchange for the time being, it will take out some foreign exchange to buy national debt and other investments. At present, there are more dollar assets and euro assets, and the rest are less. These are all for the preservation and appreciation of foreign exchange reserves.
Of course, you can also buy nothing and put it in your hand. Cash itself is devalued.