Because we need to trade with different countries in international trade, the types of foreign exchange reserves in different countries will be slightly different. The main type of China's foreign exchange reserves is USD. After all, the trade volume between China and the United States is huge, and the status of the US dollar as a hard currency is relatively high in the world. For example, a country's main trade is cooperation with Britain, so the country's foreign exchange reserves may be pounds.

The specific forms of foreign exchange reserves include: short-term government deposits abroad or other means of payment that can be cashed abroad, such as foreign securities, checks, promissory notes, foreign currency drafts of foreign banks, etc. In order to balance the balance of payments and stabilize the exchange rate, prevent the skyrocketing and plunging from affecting the real economy. Reduce the risk that RMB can bear.

The structure of China's foreign exchange reserves has not been clearly announced, and it is currently a state financial secret. It is estimated that US dollar assets account for about 70%, Japanese yen accounts for about 10%, and euros and pounds account for about 20%. This is based on the report of the Bank for International Settlements, the report of Reuters and the currency proportion in China's foreign trade balance.

Why does the dollar occupy such a large proportion? I think it may be these reasons. At present, two-thirds of international trade is settled in dollars; Most of the wholesale transactions in the international financial market are conducted in US dollars, and the financial operations of central banks in various countries are mainly in US dollars. The foreign exchange reserves of major countries are mainly dollar assets; The vast majority of international syndicated loans and international bond markets transactions are US dollars or US dollar bonds. Therefore, it is very important to promote the internationalization of RMB.