A basket of currencies is not a real currency, but a unit of account and a standard of valuation. Some countries use it in exchange rate management, such as linking their currencies to an existing or constructed basket of currencies, or referring to a basket of currencies in et constant exchange rate management.
The People's Bank of China announced that with the approval of the State Council, China began to implement a managed floating exchange rate system based on market supply and demand with reference to a basket of currencies on July 2, 2005.
The so-called reference to a basket of currencies means that a country chooses several major currencies according to the closeness of trade and investment, and different currencies set different weights to form a basket of currencies, and set a floating range to make the country's currency float according to this basket of currencies.
The determination of a basket of currencies is mainly based on the weight of foreign trade. At present, the United States, the euro zone, Japan and South Korea are China's main trading partners. Accordingly, the US dollar, the euro, the Japanese yen and the Korean won will naturally become the main basket of currencies. As Singapore, Britain, Malaysia, Russia, Australia, Thailand, Canada and other countries have a large proportion of trade with China, the exchange rate of their currencies against RMB is also very important.
Starting from 20 17 65438+ 10/0/0, according to the sampling rules of CFETS currency basket, 112016 is added to CFETS currency basket, and the number of CFETS currency baskets is from/kloc. There are: US dollar, Euro, Japanese yen, Hong Kong dollar, British pound, Australian dollar, New Zealand dollar, Singapore dollar, Swiss franc, Canadian dollar, Malaysian ringgit, Russian ruble, Thai baht, South African rand, Korean won, UAE dirham, Saudi riyal, Hungarian forint, Polish zloty, Danish krone, Swedish krone, Norwegian krone, Turkish lira and Mexican peso.