An unexpected event has occurred that greatly surprised the United States. It turns out that the U.S. has been busy for three months in vain, as China effortlessly erased the efforts of the U.S. in just one month.

From August to October of this year, the U.S. dollar continuously appreciated, aggressively suppressing the exchange rates of non-U.S. currencies, which also led to a consecutive three-month decline in our country's foreign exchange reserves.

However, in the latest data released, we found that China's foreign exchange reserves suddenly increased by $70.6 billion. At the current exchange rate, this is equivalent to an additional 500 billion yuan in just one month.

At the same time, after three consecutive months of appreciation, the U.S. Dollar Index finally experienced a significant drop in November, even falling below 102.5 at its lowest point.

If in the past, the U.S. might have been pleased to see China's foreign exchange reserves continue to increase, it is clear that the current situation is different.

Why do we say that?

This is because when our foreign exchange reserves increased in the past, the main increase was in U.S. dollar assets. With a large amount of U.S. dollars, we would purchase U.S. debt on a large scale.

So during the one or two years when our country's foreign exchange reserves were at their highest, our holdings of U.S. debt were close to $1.4 trillion.

But now, even though our foreign exchange reserves are increasing, we are still continuing to sell U.S. debt.

Currently, our holdings of U.S. debt have already fallen below $780 billion, which is nearly $60 billion less compared to the peak.After breaking through the 1 trillion mark last year, we have continuously broken through one integer threshold after another. Just in the past month, after a substantial reduction of 273 billion, we have broken through the 8 trillion threshold.

It is evident that the scale of divestment is growing larger, and the determination to divest is also increasing.

Therefore, under these circumstances, even if our foreign exchange reserves increase, the United States cannot be happy, because it is impossible to sell more U.S. debt to us.

Another point that makes the United States unhappy is that although our foreign exchange reserves have increased, the increase is likely not in U.S. dollars, but in other foreign exchange assets.

Currently, the proportion of the U.S. dollar in global foreign exchange reserves is gradually decreasing, having dropped nearly 20 percentage points in the past 20 years. Obviously, for global central banks, the importance of the U.S. dollar as an asset composition of foreign reserves is continuously declining.

Don't be fooled by the recent data released by the Swift system, which shows that the U.S. dollar still accounts for the largest share of global payments, even higher than half a year ago. This is actually an illusion.

After all, this is just data from a payment system. As the United States occasionally expels some countries from this system, the monopoly position of the Swift system is gradually being undermined, and a lot of payment data is not reflected in it, which is why the payment share of the U.S. dollar has increased instead.

So where has our country spent the money after continuously selling U.S. debt?

Undoubtedly, part of the funds have been used to purchase gold reserves.

Therefore, in the past 12 months, our country's gold reserves have been increasing every month.This is a clear signal to the outside world that we are not only buying gold but also continuing to buy it persistently. Quantitative change will eventually lead to qualitative change. As we keep buying gold with the renminbi, we gain increasingly strong credit support, and the international demand for the renminbi also becomes stronger.

The most direct reflection is that in November, the offshore exchange rate of the renminbi against the US dollar suddenly rose by 1961 points. After the Federal Reserve's interest rate hike decision is finally announced this week, the US dollar may continue to fall, and the renminbi may continue to rise.