The study looked at how the real value of China's currency, the RMB, affects the country's foreign exchange reserves. They used a special model to analyze data from two time periods: before and after a change in the RMB exchange rate. The researchers found that there is a clear connection between the RMB exchange rate and the foreign exchange reserves, and this relationship is not always straightforward. Before the exchange rate change, a higher RMB value led to a decrease in reserves, while after the change, a lower RMB value had the same effect. They suggest that changes in how foreign exchange is managed and limiting speculative trading could help balance the RMB value and reduce the growth of foreign exchange reserves.