What does RMB exchange rate break 7 mean? 2022.10.01
RMB breaking 7 means that the amount of RMB exchanged for 1 US dollar exceeds 7 yuan, that is, the RMB depreciates further.The reason why the RMB broke 7 is mainly because the US dollar is still strong now. Once the Fed raises interest rates, the world's currencies will depreciate, because the whole world is going to exchange the US dollar.After the exchange rate reform in 2015, in August 2019 and the beginning of 2020 two rounds of RMB broke '7' and then returned, so this '7' is not like the age of a person, if it is broken, it will not come back, nor is it a dam , if it is broken, it will collapse for a thousand miles.The U.S. dollar has raised interest rates and the global dollar has returned. In the global mainstream currencies, the RMB depreciated by -9%, the British pound -18%, the euro -15%, the Japanese yen -22%, the Australian dollar -7%, the Canadian dollar -4%, and the Swiss franc -8%.In fact, in the SDR basket, the US dollar has appreciated, and the RMB has also appreciated, but the US dollar has appreciated more than us.Apart from the depreciation of the US dollar, the RMB exchange rate has appreciated against other major currencies this year.Let's take the Japanese yen as an example, 2