2. Monetary policy: Domestic monetary policy is generally determined according to the domestic economy and price trends, so if prices continue to rise, domestic monetary policy will be loosened. If prices remain stable, measures should be taken to stabilize growth, and there is still room for easing monetary policy, which will affect the relationship between supply and demand of RMB.
3. US dollar exchange rate: the ratio of RMB to US dollar is the exchange rate of RMB to US dollar. If the dollar depreciates, the RMB will appreciate relatively; When the dollar appreciates, the RMB depreciates. So if the dollar keeps appreciating, then the RMB will keep depreciating against the dollar.
4. Inflation: As far as inflation is concerned, the purchasing power of currency in countries with high inflation will decrease and the currency will depreciate. If inflation in the United States is higher than that in China, the dollar will depreciate and the RMB will appreciate. However, if inflation in China is higher than that in the United States, the value of the RMB against the US dollar will decline, but the RMB exchange rate will rise.
5. Public expectation: Public expectation will affect the adjustment of RMB exchange rate. If the public expects the RMB to appreciate, the foreign exchange held will be reduced, and the foreign exchange will be settled as soon as possible to reduce the losses caused by the RMB appreciation. In this case, the pressure of RMB appreciation will increase and the appreciation speed will accelerate.
6. Balance of payments: When a country's imports increase, resulting in a deficit, when the country has additional demand for foreign currency, the foreign exchange market will cause foreign exchange to appreciate and the local currency to depreciate, and vice versa.