Because the foreign exchange account refers to the domestic currency invested by the central bank of the receiving country when purchasing foreign exchange assets.

Because RMB is a non-convertible currency, foreign capital needs to be converted into RMB to enter circulation. The state has to invest a lot of money to exchange foreign capital, which increases the demand for money and forms foreign exchange. Foreign exchange reserve, also known as foreign exchange reserve, refers to the foreign exchange part of the international reserve assets held by a government, that is, the creditor's rights held by a government in foreign currency. Broadly speaking, anything that can be used for international trade payment can be called foreign exchange reserves, including precious metals and securities.