You may not understand the relationship between the central bank's interest rate cut and the RMB exchange rate. When the central bank chooses to lower the deposit interest rate, it will release a lot of money and reduce the overall purchasing power of the currency, so this behavior will naturally lead to the depreciation of the RMB. At the same time, in order to let the RMB appreciate, the most important thing to do is to raise interest rates effectively, which is also the mainstream way chosen by many countries and regions. Especially when the Federal Reserve keeps raising interest rates, some countries and regions need to raise interest rates to maintain the stability of their currencies. Especially for the yen and the euro, we can see that both the yen and the euro have raised interest rates accordingly, which can maintain the exchange rate between the yen and the euro.
These two phenomena are causality in themselves.
As I said above, it is not because the central bank's interest rate cut will curb the depreciation of the RMB, but because the central bank's interest rate cut will further accelerate the depreciation of the RMB. Especially when there are more and more RMB in the market, the RMB will definitely depreciate in different degrees. At the same time, because the Fed's interest rate hike will lead to a corresponding increase in the purchasing power of the US dollar, the US dollar index will further rise, which in turn will lead to the continued depreciation of the RMB.
The depreciation of RMB is actually normal.
To some extent, although we need to keep the exchange rate stable properly, if we want to effectively boost economic development, we may need to devalue the RMB in a short time to achieve this goal. Especially when the consumption power of our domestic market has weakened, we need to release more liquidity to the whole market in this way, which can also ensure the normal development of many industries.