The factors affecting the exchange rate change are as follows:

1, inflation

Under normal circumstances, countries with high inflation will reduce the purchasing power of their currencies and devalue them. If China's inflation rate is higher than that of the United States, the value of RMB against the US dollar will decline and the RMB exchange rate will rise. On the contrary, when the inflation rate in the United States is higher than that in China, then the dollar depreciates and the RMB appreciates accordingly.

2. Supply and demand.

The relationship between supply and demand in the foreign exchange market will affect the foreign exchange rate. When the supply is less than the demand, the exchange rate will rise, and when the supply is greater than the demand, the exchange rate will fall.

3. Supervision of the Central Bank.

The central bank is also a participant in the foreign exchange market. The central bank participates in foreign exchange transactions not for profit, but to stabilize the exchange rate. The more foreign exchange reserves the central bank holds, the greater the supervision.