The pegged exchange rate system means that a country links its currency with another currency or a basket of currencies and keeps a fixed ratio with it. That is, if the RMB adopts the exchange rate system pegged to the US dollar, then the US dollar will appreciate by 10%, and the RMB will also appreciate by 10%. If the pegged exchange rate system is not adopted, the dollar will appreciate 10%, and the RMB may appreciate, remain unchanged and depreciate, which is uncertain. No matter in China or the United States, the exchange rate of RMB against the US dollar in the foreign exchange market is the same. Of course, there is an extra charge for the bank's foreign exchange quotation.

I assume that the US dollar will appreciate by 65,438+00%, so the RMB will also appreciate by 65,438+00% by pegging the exchange rate system. In other words, the RMB changes according to the change of the US dollar. The RMB has remained at the same level against the US dollar. The appreciation is based on the currency of a third country.