At the same time, proper measures could be taken to manage and adjust the RMB exchange rate based on market supply and demand while considering the changes of the basket of currencies, so as to maintain the RMB exchange rate basically stable at an adaptive and equilibrium level.
In this sense, it is quite natural that people are increasingly concerned about how the composition of the basket currencies is determined. To enhance public understanding of China’s exchange rate policy, I would like to make the following clarifications regarding the determination of the basket currencies.