What is the RMB foreign exchange rate?

RMB foreign exchange rate introduction: Since the birth of the RMB, it has always been a non-freely convertible currency. The RMB foreign exchange rate is determined by the central bank, the People's Bank of China, and is only used as a policy means to regulate import and export trade and improve the balance of payments. The RMB price is roughly divided into two periods: the exchange rate before the reform and opening up and the exchange rate after the reform and opening up. Before the reform and opening up in 1978, during the period of national economic recovery from 1949 to 1952, the RMB was not based on gold, but implemented a managed floating system, and prices were the basis for determining the exchange rate; from March 1955 to November 1971, the Bretton Woods system was in a period of stability, and the RMB exchange rate remained at 2.4618 yuan (1 US dollar exchange rate) for nearly 16 years; from 1973 to 1979, the RMB exchange rate was adjusted only a few times, and by 1978, the central parity rate of the RMB against the US dollar was 1.684 yuan (1 US dollar exchange rate).

After the reform and opening up, the RMB exchange rate experienced the dual-track period of listing price and adjustment price, the flexible peg to the US dollar system after the exchange rate was merged, the rigid peg to the US dollar system after the Asian financial crisis, and the exchange rate system reform on July 21, 2005. The period of the dual-track exchange rate system from 1979 to 1994 was the period with the largest depreciation of the RMB, from 1.555 yuan (1 US dollar exchange rate) in 1979 to 8.619 yuan (annual average price) in 1994, with a depreciation rate of 4.5 times. During the dual-track exchange rate system, there were still foreign exchange coupons with an apparent denomination equivalent to the RMB. During this period, there was a black market for foreign exchange banned by the government. At the beginning, it mainly speculated on foreign exchange vouchers, and then directly speculated on foreign currencies. The black market price of foreign exchange (foreign exchange vouchers and foreign currencies) was much higher than the official exchange rate. The maximum difference in the early stage was nearly double, and then gradually fell back until it was close to the official listing price. After entering 1990, the (black market price) foreign exchange price over the counter turned weaker than the official listing price. At the same time, foreign exchange vouchers gradually faded out of the market.

From 1994 until the reform of the exchange rate system in 2005, the RMB against the US dollar has been maintained at more than 8.27 yuan (1 US dollar exchange rate). After the reform of the exchange rate system in 2005, the RMB gradually entered a period of appreciation. The RMB appreciated from 8.2765 yuan (1 US dollar exchange rate) before the exchange rate reform to 7.3046 yuan at the end of 2007, an appreciation rate of 11.74%.