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It is rmb forex rates real exchange rate that matters most for the real economy. If a currency has a high value in real terms, this means that its products are selling at read more competitive prices on world markets, which will tend to discourage exports and encourage imports.
Purchasing power parity does not, in fact, hold in the short run, not even approximately, even for goods and services that are traded internationally. But purchasing power parity does tend to hold in the long run.
The source is that international investors will be willing to hold foreign assets, given that the rate of return on domestic assets is higher because of the monetary tightening, only if they expect rmb forex rates value of the rmb forex rates currency to fall http://blogforex.website/foreign/forex-screener.html the future.