Exchange rate refers to the exchange rate between two currencies, and can also be regarded as the value of one country's currency against another's currency. Specifically, it refers to the ratio or parity between one country's currency and another country's currency, or the price of another country's currency expressed in one country's currency.
Exchange rate changes have a direct regulatory effect on a country's import and export trade. Under certain conditions, by devaluing the local currency, that is, letting the exchange rate rise, it will promote exports and restrict imports; On the other hand, the appreciation of the domestic currency, that is, the decline of the exchange rate, plays a role in restricting exports and increasing imports.
On July 9, 2020, both onshore and offshore RMB exchange rates against the US dollar regained the 7.0 mark and returned to the "6 era".
foreign exchange fluctuation
wave form
Legal appreciation and legal depreciation of 1. exchange rate
2 individual exchange rate changes and general exchange rate changes
3. Real exchange rate changes and market exchange rate changes
4. Overvaluation and undervaluation of exchange rate
Fluctuating situation
The People's Bank of China authorized China Foreign Exchange Trading Center to announce that on October 28th, 2065, the central parity of RMB exchange rate in the inter-bank foreign exchange market was USD 1 RMB 6.2485, EUR 1 RMB 8.08 18 yuan, and JPY 100/RMB 7.855. Hk 1 RMB 0.8062, GBP 1 RMB 10.055, Australian 1 RMB 6.4784, Canadian 1 RMB 6.2629, RMB 1 0.
Fluctuation normality
There are many market and policy factors that affect the exchange rate. The RMB may appreciate or depreciate. No one can accurately predict the exchange rate trend. Whether it is short-term or long-term, exchange rate inaccuracy is inevitable, and two-way fluctuation is the norm. Whether it is the government, institutions or individuals, we should avoid being misled by the predicted conclusions.
A managed floating exchange rate system based on market supply and demand and adjusted with reference to a basket of currencies is suitable for China's national conditions and should be adhered to for a long time.
Under this exchange rate system, the exchange rate cannot be used as a tool, neither for depreciation to stimulate exports, nor for appreciation to offset the impact of rising commodity prices. The key is to manage expectations well and resolutely crack down on all kinds of malicious market manipulation and malicious unilateral expectations. Enterprises and financial institutions should actively adapt to the two-way fluctuation of exchange rate.