Enterprises import foreign exchange?
Including imported goods and foreign investment, enterprises need to use foreign exchange. The main foreign exchange reserves are generally US dollars, and the rest are mainstream currencies such as euro, pound and yen.
Personal purchase of foreign exchange?
Including studying abroad and traveling abroad, you need to convert RMB into foreign currency.
Second, to answer this question well, you need to know how foreign exchange comes from:
Generally speaking, foreign exchange is obtained through international trade. During the 30 years of China's reform and opening-up, China exported a lot of goods with its cheap goods and labor, and maintained a trade surplus, such as doing business with the United States and exporting a lot of clothes. In the end, the United States will pay the merchants in US dollars, and the US dollars earned by the merchants will be taken back to the domestic bank and converted into RMB, so that they can be used in China. For a long time, the country has accumulated a huge amount of foreign exchange in dollars.
Third, then we need to know how this country uses foreign exchange:
A large part of foreign exchange reserves is used by China to purchase resources and technology from abroad, which improves the backward technology and insufficient resources in China to a certain extent and plays a very good role in promoting economic development.
Secondly, it is used to resist financial risks and maintain exchange rate stability, so I won't talk about it here.
Finally, to answer the main question, some of China's foreign exchange reserves are used to buy new technologies and new energy from developed countries in Europe and America. However, as we all know, the developed countries in Europe and America have always imposed a technology blockade on China, and many new technologies regarded as "secret" and "national security" by the United States will not be sold to China, especially those involving Internet communication, military affairs, energy and other fields, and the restrictions on China are extremely harsh. In this way, China's foreign exchange reserves have lost a considerable part of their functions. Frankly speaking, you can sell things to others (all cheap goods that others are too lazy to produce or seriously pollute), but others will not sell you things (the latest scientific and technological military products are afraid of being copied), which is one of the reasons.
Too much or too little in economics, we can directly use the "supply and demand relationship" to study. At present, China has US$ 4 trillion in foreign exchange reserves. Why is there more foreign exchange because supply exceeds demand? The trade surplus is too large, so the state must convert the dollars and euros earned by entrepreneurs into RMB for entrepreneurs to take to China for production, investment and consumption. The amount of RMB issued by the central bank is certain, so just start the printing press and continue to issue RMB, 4 trillion US dollars, at least 25 trillion RMB. Such a huge figure will only lead to one result, that is, domestic hyperinflation and soaring prices. This is also a very headache for the China government at present. After 20 years, China people should feel very obvious.
To solve this problem, it may be necessary to solve it from the system, let foreign exchange stay abroad and prevent the inflow of dollars.
Above,
Hope to adopt.