In recent years, China's foreign exchange reserves have shown a rapid growth momentum, which has far exceeded $2 trillion. Such a huge foreign exchange reserve reflects the strength of China's economy, but it also brings many adverse effects to China's economic development. Therefore, it is of great practical significance to understand the main factors of the rapid expansion of foreign exchange reserves, correctly understand the adverse effects of foreign exchange reserve growth on macroeconomic growth, and take reasonable measures to maintain sustained and healthy development.