Author(s)

Yetong Xiong

Corresponding Author

Yetong Xiong

ABSTRACT

The exchange rate, as a currency tool for regulating the foreign market, plays a role in measuring and converting prices in international investment activities and foreign trade transactions. It is an important economic lever for adjusting a country's trade income and expenditure. Therefore, exchange rate fluctuations are balanced and stable for a country's import and export trade. Development has important implications. However, since 2015, China's economic growth has gradually changed from the original high-speed growth to medium-high speed growth. Various economic indicators have shown a downward trend, and the development of import and export trade is inevitably affected. At the same time, the development of China's import and export trade in the future will face domestic supply-side reforms to eliminate backward production capacity; severe domestic economic conditions such as increased risk of exchange rate uncertainty as the marketization of the RMB continues to deepen, and the rise of protectionism in Europe and the United States; The complicated foreign economic environment such as the rotation of political parties in European countries and unstable economic conditions. In this context, from the perspective of exchange rate changes, it is of practical significance to study how to maintain a balanced and stable development of China's import and export trade, so that China's domestic economic growth is kept stable under the promotion of international trade.

KEYWORDS

Real Rmb Exchange Rate Fluctuation, China's Foreign Trade