RMB/USD exchange rate

Abstract

This original purpose of this paper is to figure out why the RMB exchange rate fluctuated sharply, and how it would go. As the research goes on, several opinions showed up, some people believe the fluctuation was in order to offset the influence of American 25% tariff on Chinese export, but some experts fight against, such as Xing Yuqing, he said Chinese export has large proportion of high third-party added value and low technology goods, which result in the RMB depreciation was only offset a small part of 25% tariff. One more opinion, they believe the result of the fluctuation of the RMB exchange rate was manipulated by the Chinese government. So far, the most reliable opinion is to offset the influence of the American 25% tariff. Moreover, as observed, the exchange rate is stable at 7.08 RMB per USD.