Research On The Impact Of RMB Exchange Rate Fluctuations On Foreign Trade In Henan Province

In today’s world of increasing openness,trade between foreign countries is becoming more frequent,increasing foreign trade position in the national economy.Exchange rates as a trade price,and changes in its effects on a country’s or region’s foreign trade is enormous.Since the reform and opening up to the outside world,Henan Province’s foreign trade has made great development.China is vigorously promoting the " One Belt And One Road",while Henan FTA has been approved by the State Council,was founded in 2017.In this context,history of the Henan province foreign trade is facing the best opportunity,the future is bound to achieve leap-style development.Since the exchange rate reform in 2005,China has implemented a floating exchange rate management system,the RMB exchange rate is facing a tremendous pressure of appreciation,and its volatility is also growing.With China’s gradual opening of capital accounts and officially joined the SDR currency basket as the fifth currency of RMB,RMBexchange rate on the economy,especially foreign trade and the impact will be more significant.Therefore,in-depth study of RMB exchange rate’s influence on foreign trade in Henan province has a strong significance.In this paper,through empirical and analysis method,the RMB real effective exchange rate of import and export trade of Henan province and the influence of the RMB real effective exchange rate on the influence of processing trade import and export of Henan province were studied.On this basis,combined with the volatility of the RMB exchange ratein the future,provide recommendations for the Henan province foreign trade in how to do better development in the new era.