The exchange rate of RMB against USD is relatively stable, resulting in a stable and dynamic 'China-US currency union with significant impacts on both the Chinese economy and the world economy.

ANBOUND's research team believes that the ‘China-US currency union’ is the world’s largest, most influential currency union, and the volatility or the dissolution of this currency union might have tremendous impacts on the financial market and the economies of both countries.

In terms of policy, China should avoid breaking up the ‘China-US currency union’ and China should make this a priority target when making adjustment to the country’s monetary policy.