Multiple currency baskets and their variations are a more accurate reflection of the true level.
If it is pegged to a single currency, it will not meet the needs of diversified currencies for trade and investment, nor will it reflect the actual level of the exchange rate.
The exchange rate should be adjusted on the basis of market supply and demand, which is conducive to a more scientific and reasonable level.
For enterprises and residents, under the current pattern of diversified trade and capital exchanges, the RMB exchange rate should not be measured solely on the basis of bilateral exchange rate, but should be shifted to multilateral exchange rate, pay more attention to the change of the basket exchange rate, and view the RMB exchange rate level in terms of the change of the RMB against the basket of currencies.
