The fundamental factor that determines the value of money is the ratio of money to domestic wealth. When wealth remains unchanged, if paper money increases, it will depreciate. On the contrary, if the total amount of paper money remains unchanged and wealth increases, it will increase in value. The currency ratio between countries depends on the paper money circulation and wealth growth of the two countries. Since the outbreak of New Crown Pneumonia, China has successfully controlled the epidemic, rapidly recovered its economy and further increased its wealth. However, plagued by the epidemic, the United States can only stimulate the economy by increasing the money supply, resulting in a sharp appreciation of the RMB against the US dollar.

Australia is a resource-based country. With the rapid recovery and growth of production and consumption in China, the demand for resources is also increasing. Demand for iron ore, coal, milk, etc. Has greatly increased, which has led to the rise in resource prices. Australia has benefited from this and its wealth has been increasing. So the Australian dollar rose against the RMB. The value of paper money depends on national credit, anchor, national economic situation and psychological factors of investors. This is not difficult to understand the current sharp appreciation of the RMB against the US dollar.

The appreciation of the Australian dollar against the RMB is mainly due to the fact that the economic situation of major western countries is worse than that of Australia, which is rich in natural resources and the government has strong ability to cope with the epidemic. At the same time, due to ideological reasons, western capital is more willing to go to Australia to avoid risks. In 2020, affected by the COVID-19 epidemic, major central banks around the world implemented loose monetary policy. To put it bluntly, it is crazy to print money, which also leads to the price increase of stock market, bitcoin and commodities. The amount of money put in by the Federal Reserve is $2.8 trillion, and that of the European Central Bank is 1.35 trillion euros. Appropriate inflation can accelerate economic development, which is an economic problem.

After all, the dollar is still the universal currency. The Federal Reserve frantically printed money and rolled up wool from all over the world. The appreciation of RMB against the US dollar can only be said that the US dollar is less valuable, the export products are more expensive, and the price is lost, which is unfavorable to the foreign trade industry for a long time. The depreciation of the dollar has just begun. During the epidemic, the Federal Reserve started printing money and printed billions of dollars, which transferred its crisis to the whole world and accelerated the collapse of the dollar. I think it is best for China people not to hold foreign currencies, especially US dollars, but to exchange them temporarily when necessary. RMB is the most valuable currency at present.