The role of international reserve: 1. The international reserve can be used as a means for the government or central bank to intervene in the foreign exchange market and maintain the stability of the country; 2.
2. Make up, ensure the smooth progress of foreign economic exchanges and international settlement, adjust the imbalance of international payments, avoid taking drastic measures to tighten domestic economic development, slow down the adverse impact on national economic development, and achieve the development goal of economic stability;
3. Maintaining the strong domestic currency and maintaining the credibility of the domestic currency in the international financial market are the basis and guarantee for the country’s foreign lending and repayment.
The international reserve currency status is also an important symbol for assessing the solvency and credit of debtor countries.
