② Improve the price competitiveness of domestic products in the international market;

(3) can make its customers get better service.

The devaluation of the domestic currency is conducive to domestic exports, reducing imports, earning foreign exchange for the country, promoting the development of foreign trade, and helping domestic enterprises to "go global." However, because depreciation stimulates export demand, it will also affect the rise of domestic prices. If the currencies of major industrial countries depreciate, it will affect the trade balance of other countries, which will lead to trade wars and exchange rate wars.

On July 2, 2005, the People's Bank of China announced that in order to establish and improve China's socialist market economic system and give full play to the basic role of the market in resource allocation, a managed floating exchange rate system based on market supply and demand will be established and improved. Since July 2, 2005, China began to implement a managed floating exchange rate system based on market supply and demand and with reference to a basket of currencies. The RMB exchange rate is no longer pegged to a single dollar, but focuses on forming a more flexible RMB exchange rate mechanism.

The People's Bank of China will adjust the floating range of exchange rate according to market development and economic and financial situation. At the same time, the People's Bank of China is responsible for managing and regulating the RMB exchange rate according to the domestic and international economic and financial situation, based on market supply and demand, with reference to changes in the exchange rate of a basket of currencies, maintaining the normal fluctuation of the RMB exchange rate, maintaining the basic stability of the RMB exchange rate at a reasonable and balanced level, promoting the basic balance of international payments, and maintaining macroeconomic and financial market stability.