Money is an equivalent and, in a sense, a special commodity. Since it is a commodity, it must have its value. Early money was natural gold, and its value was scarcity. Later, it developed into bank notes, and its value is the bank's credit system. Finally, the currency is nationalized, and its value is the country's guarantee ability. In other words, the 100 Yuan You extracted from the bank is actually a credit certificate given to you by the state (central bank). If the country does not recognize the legitimacy of this 100 yuan, then all you have is a piece of broken paper. In order to maintain the stability of the currency value, domestic currency circulation usually measures the economic aggregate and issues currency according to the actual economic situation. People deposit money in the bank, in fact, they lend it to the bank, and the bank uses the money. In fact, the bank uses the state for credit guarantee. Therefore, we should understand that in the currency cycle, the state should not create money out of thin air, but only provide credit guarantee! If the country plays hooligans and distributes money indiscriminately, then the result is that a large amount of money appears out of thin air in the market, which will dilute the monetary value of the original currency holders, damage the credibility of the national currency, and cause skyrocketing prices, inflation and currency depreciation. Typical cases, such as legal tender in the 1940s and Zimbabwe's ratio of nearly 10. In fact, the same is true of the foreign exchange market. How much one yuan can be exchanged for dollars is determined by market demand. If everyone is optimistic about China's economy and willing to invest, then more and more people will change their dollars into RMB, and the RMB will appreciate. And everyone is not optimistic about China's economy and unwilling to invest, so everyone will exchange RMB for US dollars, and the RMB will depreciate. If the RMB suddenly depreciates sharply, it will be worthless, just like spamming money, which will not only damage the national currency credit, but also cause sudden market imbalance. For example, Company A opened a factory in China and borrowed $6,543,800+from Company B, with an expected income of RMB 8 million, which is still profitable at the exchange rate. However, the currency suddenly depreciated, and Company A had to pay Company B $6,543.8+0,000 in exchange for RMB 6,543.8+0,000. Isn't that a big loss? Similarly, a similar situation will lead to sudden chaos in the financial order, which is extremely harmful. Who will invest after the reputation is damaged?