It is cost-effective to exchange US dollars for RMB in 2020. On the whole, the RMB has been in a state of depreciation, and the amount of 1 USD converted into RMB has begun to decrease, but it has little effect in the short term.

Since the outbreak of the epidemic, the RMB exchange rate has been very strong, which has made a great breakthrough in the central parity of the US dollar, further enhancing the attractiveness of RMB assets. Therefore, it can be seen that under the influence of economic fluctuations and epidemic situation, the trend level of RMB is very stable, and the current international situation is gradually easing, so the market is very optimistic about the trend of RMB.

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Factors affecting RMB exchange rate

1, changes in balance of payments

The change of balance of payments is an important factor in determining the RMB exchange rate, which reflects the influence of supply changes in the foreign exchange market on the RMB exchange rate. If there is a surplus in the balance of payments, the foreign exchange supply in the foreign exchange market will increase, the foreign exchange will depreciate and the RMB will appreciate. If the balance of payments deteriorates and the foreign exchange supply declines, the RMB will face depreciation pressure.

2. Regulation by the Central Bank

Participants in the foreign exchange market are not only buyers and sellers, but also the central bank, which is the largest participant in the foreign exchange market and can influence the exchange rate trend. In the case of RMB appreciation, in order to control the rapid appreciation of RMB and stabilize the exchange rate, the central bank needs to buy foreign exchange denominated in local currency in the foreign exchange market.

3. The flow of hot money

If international speculative capital flows in, the foreign exchange supply in the foreign exchange market will increase, and the pressure of RMB appreciation will increase. If speculative capital flows out, the pressure of RMB appreciation will ease. China's newly revised foreign exchange regulations have strengthened the control of hot money inflows. At the same time, the expectation of RMB appreciation is reduced, the profit margin of speculative capital is reduced, the outflow of speculative capital is increased, and the pace of RMB appreciation is slowed down.