The Impact of RMB Exchange Rate Adjustment on China's Macro Economy in the Post-epidemic Era

Abstract

Since the outbreak of the new crown epidemic in early 2020, due to different countries' control of the epidemic, global economic uncertainty has increased. As a barometer of economic activities such as manufacturing and trade, the renminbi exchange rate has shown a Two-way fluctuation trend of first devaluation and then appreciation. Especially after June, the renminbi exchange rate against the U.S. dollar has strengthened along with the rebound of the U.S. epidemic, and the central parity rate is close to June 2019 New highs after. During this period, the yield of my country's national debt first fell and then rose, showing a strong correlation with the exchange rate in the graphical trend. Based on the Two-way fluctuations in the RMB exchange rate, the author analyzes how the exchange rate affects interest rates, and tries to predict the central bank's response policies.