Foreign exchange reserves cannot be easily used, and most of them are reflected in the form of assets, which are composed of many kinds of assets, which are then calculated in the form of US dollars.

Moreover, most of these foreign exchange reserves are not our own, for example, when international travel funds enter China, they take US dollars to the State Administration of Foreign Exchange, and then exchange them for RMB to invest in China. A few years later, when people make money and leave, they have to exchange more renminbi for more dollars and leave. For example, if the exchange rate remains the same, a foreigner or a foreign company takes 100 million US dollars to come in, and then exchanges 600 million yuan at the SAFE to invest in China, and after a few years, the 600 million yuan becomes 1.2 billion yuan, and when the foreigner leaves, he takes 1.2 billion yuan to the SAFE and leaves in exchange for 200 million US dollars. Don't talk about losing money.

So we can't just say that these foreign exchange reserves are ours. It can be said in layman's terms that the property right belongs to someone else, and the management power is in the hands of the State Administration of Foreign Exchange.

And it is not to say that the more foreign exchange reserves, the better, the more foreign exchange reserves, the faster the growth, then the more base money will be put into the country, and under the reserve system, more and more money will be derived through the banking system, causing inflation to rise rapidly.

Most of the foreign exchange reserves are only temporarily deposited with the State Administration of Foreign Exchange (SAFE). For example, many foreign-funded export enterprises in China have obtained US dollars, which are placed in the SAFE and obtained renminbi from the SAFE. If foreigners want to go home, they still have to exchange their renminbi for dollars and leave.

At the same time, foreign exchange reserves also have to pay overseas debts, for example, domestic companies owe money to overseas companies, and cannot use RMB to pay this debt, so they need to use their own RMB to exchange for US dollars to pay overseas debts.

There are also domestic import enterprises, when importing goods from overseas, they need to take the RMB in their hands to the State Administration of Foreign Exchange to exchange for US dollars or other currencies, and then go to the international market to buy various production raw materials, iron ore, crude oil...... There are also a variety of goods. All kinds of machinery and equipment, all kinds of core components of science and technology, all kinds of production equipment, all kinds of civilian supplies,...... Very, very much.

Therefore, the State Administration of Foreign Exchange must ensure the liquidity of foreign exchange and cash in order to make the country function normally. Once the liquidity is exhausted, the country will not be able to function normally, so this cash flow cannot be easily used to compete with the protagonist-level guys.

There are several main sources of foreign exchange, first, exports, second, international hot money comes in for investment, third, domestic enterprises borrow overseas debts, and fourth, overseas investment by the State Administration of Foreign Exchange, such as buying U.S. Treasury bonds.