What determines the exchange rate of national currencies? Does the government have the right to control or adjust the exchange rate? Will foreign countries recognize it? Why does the United States always attack China with the RMB exchange rate? There are many theories to determine the exchange rate. The most classic one is the purchasing power parity theory. That is to say, in the absence of a series of transaction costs such as tariffs, the actual value of goods expressed in currencies of various countries should be equal, but the real commodity value determines the exchange rate changes of various countries. Among them, the factors that affect the exchange rate changes of a country are inflation, prices, labor productivity, the intervention of domestic monetary authorities, international capital flows, etc. These factors only affect and determine the exchange rate parity.

In fact, the domestic government can control the exchange rate in a short time, provided that you have enough foreign exchange reserves. A strong foreign exchange reserve is the fundamental force that dares to exchange money, and it cannot be decided by foreign countries' denial. If the People's Bank of China says that the RMB is 6: 1 against the US dollar, and the US says that it is not, and the RMB is overvalued and should be 1: 8, then it will choose to sell RMB and buy US dollars. However, the China government has strong foreign exchange reserves, invested a lot of dollars in it and bought RMB. In this way, the RMB may not succumb to the will of the United States and depreciate under the support of foreign exchange reserves.

On the other hand, it's simpler. When foreign buyers undervalue RMB, the People's Bank of China is the issuer of RMB, which is only a matter of the speed of the machine thrown at them.

As for why the RMB exchange rate was used to attack China, this issue is much more complicated, and it can't be made clear in one or two sentences. Recently, the dollar has not depreciated against the RMB, but has appreciated. It is reported that the United States forced the China government to agree to open a RMB settlement point in the United States, which means the formation of a RMB trading market in the United States that is not controlled by the China government. Much like the way in which the United States produced the Nikkei index to attack the Japanese financial market in the 1980s, if so, it can be understood as: the attack is a drunkard's intention, but he cares about the establishment of the overseas trading market of RMB. Let time test it.

Personal opinion, welcome to correct me.