The resulting conspicuous demand for this specific foreign currency in the market would become a factor influencing the RMB exchange rate. As such, in determining the currency weights in the basket, we also take into consideration of the currency structure of China’s foreign debt.
- FDI should be considered In recent years, rapid growth has been witnessed in FDI which has been gaining importance in our foreign economic relations. By now, the accumulated FDI flowed into China has reached over $ billion, a significant part of which was denominated in the currencies of the originating economies.