We will let the market mechanism to determine the exchange rate according to evolving supply and demand. And we are proud that with continuous financial market deepening the size and  4  BIS central bankers’ speeches  price mechanisms in the foreign exchange market has been much developed now. That is why in most cases the exchange rate reflect the market mechanism.
If you recall the 1970s and early 1980s, when inflation was not contained – when it was both high and variable – you'll remember the high degree of uncertainty that prevailed then. Prices were hard to compare and hard to predict. As a result of this uncertainty, people found it difficult to make sound spending and investment decisions.