The appreciation of RMB will cause losses to foreign exchange reserves, but if domestic RMB financial assets, national wealth and current GDP are calculated in US dollars and calculated in terms of international purchasing power, there will be corresponding appreciation, and the scale of foreign exchange reserves is still very small compared with these assets and wealth.
Even if RMB appreciates, foreign exchange reserves will suffer losses, and the gains of the whole country will outweigh the losses. In fact, even if foreign exchange reserves and exports are considered together, the gains since the appreciation of the RMB exchange rate are far greater than the losses.
This is the crux of the problem. After reading the above introduction, the reduction of international foreign exchange reserves symbolizes the appreciation of RMB against the US dollar.