First, let's look at a chart of RMB against the US dollar:
! [Chart of RMB-USD exchange rate] (Chart of RMB-USD exchange rate)
As we can see from the figure, the exchange rate of RMB against the US dollar has experienced some fluctuations in the past few years. These fluctuations are often closely related to the economic development of China.
1. Monetary policy regulation
The fluctuation of RMB exchange rate is often influenced by the monetary policy of the Bank of China. When the central bank adopts a tight monetary policy, the RMB exchange rate tends to rise; When the central bank adopts a loose monetary policy, the RMB exchange rate will fall.
For example, after the central bank suddenly devalued the RMB in 20 15, the exchange rate of the RMB against the US dollar fell sharply. This move aims at enhancing China's export competitiveness, but it also causes instability in the international market.
2. Economic growth and foreign trade
The fluctuation of RMB exchange rate is also closely related to China's economic growth and foreign trade. When China's economic growth slows down and its foreign trade exports decline, the RMB exchange rate is often under pressure and tends to depreciate.
For example, in 20 18, China's economic growth slowed down, the foreign trade situation was grim, and the exchange rate of RMB against the US dollar depreciated for some time. This depreciation trend shows the pressure and challenges faced by China's economy.
3. International financial market volatility
The fluctuation of RMB exchange rate is also influenced by the international financial market. When there are fluctuations and uncertainties in the international financial market, investors often seek safe-haven assets, which leads to the rise of the exchange rate of RMB against the US dollar.
For example, in 2020, the COVID-19 epidemic broke out, the global financial market fluctuated violently, investors turned to relatively stable safe-haven assets, and the exchange rate of RMB against the US dollar also rose for some time.