The “Strong” Development of RMB

In this article, the author will focus on how the RMB has developed rapidly and exerted its real value in different transactions, such as China’s balance of payments, China’s GDP, and the real exchange rate changes of the RMB against the US dollar. In addition, by introducing investment methods, the author will provide some practical suggestions for US dollar investors to hedge long-term risks in the RMB. From an empirical perspective, an analysis of why the internationalization of the RMB has developed at a rapid level will clarify some suggestions for the relevant foreign exchange market. The research results show that although the RMB depreciated in the second quarter of 2022, due to the economic development under the socialist system with Chinese characteristics, the RMB remains strong in the foreign exchange market.