The exchange rate of RMB against USD is generated by trading in China Foreign Exchange Trading Center. The main body of the transaction is a large financial institution, and the source of transaction funds is the settlement and sale of foreign exchange by customers of major banks. Therefore, the exchange rate of RMB against the US dollar is not determined by anyone, but the exchange rate generated by the demand of all customers in China Foreign Exchange Trading Center to buy and sell US dollars and RMB.

As the largest trading entity in China Foreign Exchange Trading Center, the central bank participates in foreign exchange trading and adjusts the exchange rate by buying and selling foreign exchange. In recent years, the central bank has been buying dollars in foreign exchange trading centers, thus supporting the dollar and depressing the RMB exchange rate.