Foreign-exchange reserves of China

Foreign exchanges reserves are how much money a country has saved up to buy things from other countries. China has a lot of foreign exchange reserves because it makes lots of products and sells them to many different countries around the world. The money that China earns from selling products can be saved up in their foreign exchange reserves and used to buy things from abroad. This helps to make sure that China has enough money to buy what it needs and also to protect its currency in case it needs to buy something from another country.