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Why does the exchange rate between RMB and USD not conform to the purchasing power parity theory?
First, improve the exchange rate formation mechanism and improve the exchange rate policy environment. On the basis of the current exchange rate system, further improve the RMB exchange rate formation mechanism. While adhering to the current managed floating exchange rate policy, we should achieve a gradual, two-way and steady rise, appropriately expand the floating range, and maintain the basic stability of the RMB value. At the same time, we should coordinate with monetary policy, fiscal policy and industrial policy, reform the financial system, gradually improve the formation mechanism of exchange rate marketization, and realize the reform of exchange rate level through market mechanism.

Second, gradually relax foreign exchange control and improve the foreign exchange management system. We will systematically promote the reform of the foreign exchange management system and build a foreign exchange system with efficient services and controllable risks. On the one hand, it is necessary to improve the level of foreign exchange management and the ability of early warning and monitoring of the world economy, prevent the inflow of hot money and prevent excessive speculation of hot money. On the other hand, it is necessary to encourage enterprises to invest overseas, accelerate the implementation of the "going out" strategy, and guide enterprises of various ownership systems to carry out overseas investment cooperation in an orderly manner. On the other hand, gradually develop large multinational companies and multinational financial institutions in China to improve the level of international operation; Optimize the investment structure of foreign exchange reserves and transform them into real high-quality equity, creditor's rights and resources. To ease the pressure of RMB appreciation.

Third, optimize the foreign trade structure and extend the domestic value-added chain. Continue to stabilize expand external demand, maintain the existing export competitive advantage, accelerate the cultivation of new advantages with technology, brand, quality and service as the core competitiveness, extend the domestic value-added chain of processing trade, promote market diversification, vigorously develop service trade, and promote the transformation and upgrading of export structure. Give play to the important role of import in macroeconomic balance and structural adjustment, especially make good use of huge foreign exchange reserves, attach importance to the import of scarce commodities and high-tech products such as resources, energy and grain in China, and promote the basic balance of trade.