When the economy runs smoothly and the economic and social development runs in an orderly way, foreign exchange reserves are a kind of appropriation, which reduces liquidity and inhibits economic vitality to a certain extent.

When the economic operation is unstable, as it is now, the current situation of capital outflow that leads to the depreciation of the RMB exchange rate is the unreasonable outflow of a large number of foreign exchange balances, so most of the foreign exchange reserves are good.

197 The pound financial crisis and the Asian financial turmoil failed to save the economic crisis because the foreign exchange reserves of Britain, Thailand, the Philippines and other countries in Asia were insufficient.