What does it mean when my boss wants to give me a (most probably abit expensive) gift for exchange?

My boss is a very high class person. All of his items are expensive and branded. There is a gift exchange at work and he got me after the vote. He messaged me to ask to go to a store he or i pick and let me choose the item i want and he will pay. Of course, i feel bad and i asked him to pick instead since he will be giving the gift and know how much budget he wants.

What does it mean when my boss wants to give me a (most probably abit expensive) gift for exchange?
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