2. Inflation, unlimited price increase, and high price level will easily lead to inflation, reduce purchasing power and affect the exchange rate.
Higher interest rate will make a country's currency value rise and make it more attractive to foreign investors, thus affecting the exchange rate. Fiscal deficit, if a country has a huge budget deficit, its currency exchange rate will fall. The balance of payments deficit will lead to the depreciation of local currency and the appreciation of foreign currency, that is, the rise of foreign currency exchange rate, and the macroeconomic policies of various countries
Exchange rate refers to the exchange rate and exchange rate between the currencies of two countries. RMB exchange rate is the price and exchange rate between RMB and foreign currency.
The exchange rate of RMB represents the external value of RMB. On the basis of independence and unification, the State Administration of Foreign Exchange makes unified formulation and adjustment with reference to the price comparison level at home and abroad and the exchange rate fluctuation in the international financial market, and announces it to the domestic and foreign markets day by day. As the exchange rate of all foreign exchange receipts and payments, it is the official exchange rate and there is no market exchange rate. Its pricing method adopts the international direct quotation.
That is, fixed units (such as 100, 10000, 100000, etc.) are converted into a certain amount of RMB. ) to express the exchange rate of RMB against foreign currency.
The amount of foreign currency in a fixed unit depends on the value of each foreign currency. Except that the exchange rate of RMB against Belgian franc and Italian lira is ten thousand (10000) units and against Japanese yen is one hundred thousand (100000) units, the exchange rates of other foreign currencies are all one hundred (10000) units.
The exchange rate of RMB generally refers to the quotation of RMB against foreign currencies, that is, how many foreign currencies are converted from RMB 1 yuan or RMB 100. The rise of RMB exchange rate means the appreciation of RMB.
The RMB exchange rate shall be formulated and promulgated by the State Administration of Foreign Exchange before 1994. After the RMB exchange rate 1994+ 1 is merged, a single and managed floating exchange rate system based on market supply and demand will be implemented. The People's Bank of China announced the exchange rate of RMB against the US dollar and other major currencies according to the price formed in the inter-bank foreign exchange market the day before, and the bank took this as the basis.
Lian Ping, chief economist of Bank of Communications, said that in the future, China's labor productivity will continue to increase rapidly, the balance of payments will maintain a surplus pattern, the monetary policy will be stable and tight, and the total amount of foreign exchange reserves will be high. The difference and spread of investment income between China and foreign countries will definitely lead to RMB appreciation, but it will not greatly appreciate, and it is more likely to be basically stable in the medium and long term, with two-way fluctuations and a small appreciation.
According to the data released by the Bank for International Settlements recently, the real effective exchange rate index of RMB in June was10.58%, slightly higher than that in June, which was 5438+0.58%. 165438+1In the month of October, the central parity of RMB fluctuated higher, opening at 6.30 17 and closing at 6.2892.