The benchmark exchange rate is the exchange rate between the local currency and the basic foreign currency most commonly used in foreign exchange economic transactions.
Countries usually use the dollar as the base foreign currency for setting benchmark exchange rates.
The benchmark exchange rate usually selects the freely convertible key currency that is most commonly used in international economic transactions and accounts for the largest proportion of foreign exchange reserves as the main object, and compares it with the domestic currency to determine the exchange rate.
Before August 2006, China had four benchmark exchange rates: against the US dollar, against the renminbi, against the renminbi and against the Hong Kong dollar.
Since August 2006, the benchmark exchange rate has strengthened the yuan against the dollar.
