Because foreign exchange reserves are obtained from the country's exports, that is to say, from the trade surplus, a country's trade surplus shows that its products are cheaper than foreign products, and according to PPP parity, the same thing should have the same price, so as to balance, things in your country are cheaper, which will be unfavorable to foreign products, while the appreciation of its currency will lead to more expensive exports, which will alleviate this imbalance. Therefore, the domestic currency will have great appreciation pressure and expectation.

Tips: The above explanations are for reference only.

Reply time: February 2022-17. Please refer to the latest business changes announced by Ping An Bank in official website.