Current location - Loan Platform Complete Network - Foreign exchange account opening - Is the more domestic foreign exchange reserves the better or the less the better? What is the function of foreign exchange reserves? Why do you have to buy foreign exchange? (Please know the answer)
Is the more domestic foreign exchange reserves the better or the less the better? What is the function of foreign exchange reserves? Why do you have to buy foreign exchange? (Please know the answer)
Foreign exchange is mainly used for import and export. If we export more money than we import, our foreign exchange reserves will increase. You didn't mean to buy foreign exchange. Foreign exchange reserves are not the more the better, nor the less the better. Moderate amount is the best. I guess no one knows what the appropriate amount is. Foreign exchange reserves are the money earned by our country's exports. The more foreign exchange, the stronger the ability to resist international financial risks, such as 1997 Asian financial turmoil. If Hong Kong had not returned, Soros would have collapsed. Less foreign exchange, no money to import, weak ability to resist risks. With more foreign exchange, there will be more RMB circulation.