What is the exchange rate?
Exchange rate refers to the ratio or price of one country's currency to another country's currency, or the price of another country's currency expressed in one country's currency. The concept of exchange rate can also be the exchange rate between two currencies, and it can also be regarded as the value of one country's currency against another's currency.
The meaning of RMB exchange rate
The RMB exchange rate generally refers to the quotation of RMB against USD, that is, how much USD 1 RMB or 100 RMB is converted into.
The current RMB exchange rate formation mechanism was formed on July 2, 2005. According to a series of regulations issued by the People's Bank of China (the central bank), a managed floating exchange rate system is implemented based on market supply and demand with reference to a basket of currencies.
The exchange rate of RMB against foreign currency represents the external value of RMB. According to the principle of independence and unification, the State Administration of Foreign Exchange formulates and adjusts the exchange rate in a unified way, referring to the price comparison level at home and abroad and the exchange rate fluctuation in the international financial market, and announces it to the domestic and foreign markets day by day. As the exchange rate of all foreign exchange receipts and payments, it is the official exchange rate and there is no market exchange rate. Its pricing method adopts the international general direct quotation, that is, fixed unit.
(such as 100, 10000, 100000, etc.). )
The amount of foreign currency is equivalent to several thousand RMB, which is used to express the exchange rate of RMB against foreign currency. The amount of foreign currency in a fixed unit depends on the value of each foreign currency, except that the exchange rate of RMB against Belgian franc and Italian lira is 1 10,000.
(10000) unit, one hundred thousand (10000) unit as the conversion standard of Japanese yen exchange rate, and one hundred (100) unit as the conversion standard of other foreign currency exchange rates.
Representation of foreign exchange rate
Most countries use direct quotation. Under the direct quotation, the fluctuation of foreign exchange rate is inversely proportional to the change of the value of domestic currency: the local currency appreciates and the exchange rate declines; The local currency depreciates and the exchange rate rises. Most of the exchange rates in the market are also directly quoted exchange rates. Such as: US dollar against Japanese yen, US dollar against Hong Kong dollar, US dollar against RMB, etc.