The Effect of Currency Exchange Rate Fluctuation on Import and Export of China

摘要

Large exporters are simultaneously large importers.This is the fact that with the fluctuation of currency exchange rate import and export business effect strongly.That is the reason I choose this topic due to literature works and clearly highlights the situation created by a law.Import and export rate effects the economy of any country behind this the main thing is exchange rate of currency.This research will show the fluctuation exist in import and export business in China.The main issue is that why Chinese currency going down second exchange rate reform on 11 Aug.2015 and what effects accurse with this fluctuation.Because this is very complex situation for any country to down value the currency exchange rate.This situation especially affects the import only because devaluation of currency means that we are facing the difficulties in import due to more costly and expensive.To stable the economy of every country, it is necessary to keep a balance on currency exchange rate.But officially lowering nation's currency is a good sign for those countries that have more export and not relying on heavy imported goods.But in reverse situation, it will create a tough time for the economy of that country.This research will show some merits and demerits of the devaluation of Yuan and also describe the reason why China currency exchange rate going down in a previous year.This study will show how China gets benefit from decreasing the local currency exchange rate.The main purpose of this study is to show the effect of currency exchange rate in 2016 in import and export market and also aimed to describe the strategy behind this ups and down of currency value.And also explain the import of this fluctuation on the whole economy of the country.This research will conduct the data from year 2016 what's going on in this year with the fluctuation of currency exchange rate in import and export market.Findings from this research show the positive impact of devaluation in 2016 in Yuan exchange rate it is very interesting to know that this situation proved beneficial for the economy of China but this situation will not exist the same with every fluctuation in import and export market.Keywords: Currency Exchange Rate; Import and Export; Chinese Currency; Economy Booster