Real Exchange Rate of RMB and Its Influence on Foreign Trade
LI Lina (School of Finance, Shanghai University of Finance and Economics, Shanghai, China, 200083)
A real exchange rate is a nominal exchange rate eliminating the variation of prices. As a reflect of net influence on the prices of foreign trade goods, the movement of real exchange rate has an effect on trade. Here analyzed in this article are the movements of real exchange rate of RMB against US dollar and their Contribution to the fast growth of China’s trade from 1981 till now. In addition, the trend of real exchange rate of RMB and foreign trade in 2001 is also predicted.