Traditional Culture Encyclopedia - Traditional stories - What is the reason and function of RMB currency stability?

What is the reason and function of RMB currency stability?

The main reason is that foreign exchange reserves have two functions. First, controlling inflation means stabilizing domestic purchasing power. Second, maintaining the basic stability of the RMB exchange rate at a reasonable and balanced level requires relative external stability. We implement a prudent monetary policy with the goal of maintaining monetary stability. Maintaining monetary stability can promote economic growth. Once the currency is stable, the macro economy can grow steadily.