According to China's compulsory foreign exchange settlement system, the dollar income of enterprises should be converted into RMB. In this case, the central bank must issue more RMB to exchange the increasing and decreasing dollars! ! !

The excessive issuance of RMB undoubtedly caused excess liquidity, which in turn affected prices and various financial markets. This is also the fundamental reason why the central bank recently raised the deposit reserve ratio and interest rate.

Therefore, pay attention to a degree in everything! !

Because of the good foreign exchange reserves, we can buy what we need in the international market, but too much foreign exchange reserves will have a bad influence on our economy.