Introduction to How much does the RMB exchange rate "break 7" affect the shipping industry and foreign trade :
China implements a managed floating exchange rate system based on market supply and demand, adjusted with reference to a basket of currencies.
The tightening of the international trade situation has warmed investors' risk aversion. The exchange rate found that the US dollar index fell sharply yesterday. The market also believes that the US may take measures to depreciate the US dollar in order to cope with the RMB exchange rate “breaking 7”.
The trend of the RMB exchange rate depends on fundamentals for a long time. In the short term, market supply and demand and the trend of the US dollar will also have a greater impact. The fluctuation of the RMB exchange rate has a strong regulatory effect on China's international balance of payments, and the foreign exchange market itself will find a balance.
The RMB exchange rate fell to its lowest level in 10 years, and the US dollar against the RMB exchange rate both fell below the symbolic “7” yuan mark. A weaker renminbi will reduce the cost of US buyers’ purchase of Chinese goods to a certain extent, which will help offset the adverse effects of US tariff increases.
Reform and opening-up is China's basic national policy. Foreign exchange management must adhere to reform and opening up, further enhance cross-border trade and investment facilitation, and better serve the real economy. This policy orientation will not change after the "breaking 7".