Yes, but they can make it up with some other gain in value. For example if you're a US state agency tasked to destroy the Chinese economy, you might overall ben

Yes, but they can make it up with some other gain in value. For example if you're a US state agency tasked to destroy the Chinese economy, you might overall benefit from buying a ridiculous amount of Chinese money and then setting it on fire, if it means everyone else's Chinese money catches fire too.