Edit foreign exchange reserves

First of all, you must understand what foreign currency reserves are. foreign currency reserves are currency reserves in the form of foreign currency. foreign currency reserves represent the creditor's rights of a country.

Let me give you an example.

You made 100 vehicles and sold them to ZF to get 0.1 billion RMB. ZF sold the 100 vehicles to Japan for 0.1 billion yen. (I will ignore the involved exchange rate. Take for convenience )... the 0.1 billion yen sold to Japan is the foreign currency reserve... because you have handed over the car to ZF, and ZF has handed over the car to Japan, if the 0.1 billion yen is circulating in China, it will have no practical value, if the currency without actual value is circulated in China, inflation will increase, prices will rise higher, and money in the hands of citizens will increase, however, the country's material resources have not increased (and 100 cars are missing), so the 0.1 billion yen actually cannot be purchased in China...

What is the use of this 0.1 billion Japanese foreign currency? There are two purposes: to continue holding materials, so that you can purchase materials from Japan in the future; to be exchanged into an international currency: Meiyuan, so that you can easily purchase materials from other countries...

Do you understand? How much u. S. bonds you hold means how much the world owes you. however, because the material has been traded abroad, the money has no value in China, so it can only exist in the form of foreign exchange reserves, put it on the domestic market, so just like old Jiang's crazy paper money: China's wealth has not increased, but the paper money has grown. What will happen? Inflation is getting worse...

Why do we need to change the U.S. bonds? Because the US dollar is the currency of the world .. A lot of idiots on the Internet are talking about how the U.S. ZF financial system is doing, so we cannot pay the money... why is he an idiot... because he doesn't even know what a bond is...

Bonds are different from ZF loans... the US bond we are talking about is not the us zf bond... no matter how many times the us zf has been destroyed, as long as the United States does not kill the family, they will be able to pay off the debt... ZF loans are different. ZF loans are transactions between two ZF companies. For example, if we lent Saddam zf100 million US dollars to us and the United States wiped him out, the money would not be enough ..

As I have already said above, the Japanese bond is held to trade with Japan, but it is not just about to trade with the United States to hold American bonds .... in fact, when we trade with any country, people collect US dollars. Who collects your RMB?

This is why we hold a lot of US bonds... we use our foreign exchange reserves... the foreign currency reserve not only represents how much the world owes you, but also represents how much you can pay the world. this is our claim. I also said that foreign exchange reserves cannot be circulated in China like national wealth, which will cause more serious inflation ..

So to put it bluntly, foreign currency is actually equivalent to your salary. if you like, you get the yen. If you don't like it, you get the US dollar. But whether you get the yen or the US dollar, your salary is not less... the principle of not going back to China is also very simple. You have two children, your son has 100 cotton candy, and your daughter has 100 yuan. They buy and sell each other every day, the price is naturally a dollar... but one month you suddenly moved your salary back home, and your daughter's money became 1000 yuan, but your son still has only 100 cotton candy, your son can only sell for 10 yuan...

In this way, your salary is gone, and the family can only eat the northwest wind for a month, but the cotton candy that your daughter can buy has not increased... so your salary is lost...