Abstract

This article is based on the 2022 exchange rate fluctuation curve of the RMB against the USD and analyzes the factors affecting the fluctuation of the RMB against the USD exchange rate. The analysis reveals that the main influencing factors on the exchange rate include domestic economic conditions, international factors, interest rate levels, international balance of payments, and the COVID-19 pandemic. Within the domestic economic environment, factors such as economic growth rate, social investment, consumer spending, employment situation, and inflation rate also play significant roles in influencing the RMB exchange rate. The analysis presented in this article holds significant practical significance for maintaining stability in China's foreign exchange market.

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