The root of exchange rate stability is sustained monetary tightening
First: the renminbi has no basis for depreciation, do not believe that the renminbi will depreciate significantly, now depreciation is more harmful than good, whether it is foreign trade or domestic.
Second: the domestic real estate debt problem is the main problem, the current stage of debt deflation is inevitable, the next many years is a slow debt repayment process, the exchange rate stabilized to have a basis for debt repayment.
Third: the strength of the exchange rate is actually the strength of the economy, and the performance of domestic economic data is less than expected is the main factor of exchange rate fluctuations. In fact, the current dollar is not strong, and the renminbi will not be too far away from the dollar in the future. With the end of the dollar rate hike cycle, it will be difficult for the dollar index to stand above 100 again, at which point the pressure will decrease.
