What do you mean by foreign exchange funds
It refers to the country where the central bank buys assets and releases them accordingly. Since it is a non-convertible currency, foreign capital needs to be converted into RMB before it can be put into circulation. In order to invest a large amount of foreign capital, the country needs to purchase it with its own currency, so “” is added to form foreign exchange funds. In the narrow sense, foreign exchange refers to various means of payment expressed in foreign currency , generally accepted by all countries and used for international settlement of creditor’s rights and debts. It must have three characteristics: payability (assets that must be expressed in foreign currency), availability (claims that can be compensated abroad) and convertibility (foreign currency assets that can be freely converted into other means of payment). Foreign exchange, broadly defined, refers to all assets owned by a country that are expressed in foreign currency. T...