It's all pure book knowledge and theoretical. Quantitative easing in the United States has exceeded one trillion dollars. What has the United States done? Do you have similar products? No, just printing money. Why is the dollar still rising? Because it is an international currency, people all over the world use it, and the inflation part is diluted by the whole world. In the end, if the dollar really collapses, it will be the world economy! Other countries, such as the United States, print unlimited amounts of money, and the result will be miserable, because no other country will use your money, which is the essence!

The fundamental factor that determines the value of money is the ratio of money to national wealth. In the case of constant wealth, more paper money will depreciate. On the contrary, when the total amount of paper money remains unchanged, wealth will increase. The currency ratio between countries depends on the paper money circulation and wealth growth of the two countries. Since the outbreak of New Crown Pneumonia, China has successfully controlled the epidemic, rapidly recovered its economy and further increased its wealth. The United States, troubled by the epidemic, can only stimulate the economy by increasing the money supply, leading to a sharp appreciation of the RMB against the US dollar. Australia is a resource-based country. With the rapid recovery of production and consumption in China, the demand for resources is also increasing. Demand for iron ore, coal, milk, etc. A substantial increase has led to an increase in resource prices. Australia has benefited from it and its wealth has been increasing, so the Australian dollar has risen against the RMB.

This is the beauty that the RMB is not freely convertible to the outside world and is controlled by the state.