PBOC: Exchange Rate and Current Account Do Not Have a Simple Linear Relationship

36Kr reported that the PBOC's policy stance on the RMB exchange rate states that there is no simple linear relationship between the exchange rate and the current account. The exchange rate reflects a comparative price relationship between currencies, influenced by multiple factors including economic growth, monetary policy, financial markets, geopolitical developments, and sudden risk events. Analyzing exchange rate fluctuations requires looking not only at goods trade but also at services trade; considering not just the current account but also the financial account; and focusing on both fundamental economic factors and market expectations.