Study of Adaptability of Fair Purchase Price to RMB Exchange Rate

Under the background of current economic policy,China’s RMB exchange rate level is analyzed and studied on the basis of an exemplary model,in which fair purchase price determines the exchange rate.The study shows that the model is effective in explaining the development of RMB exchange rate.The polygonal line regression model shows that RMB exchange rate is indeed affected by exchange rate policy. However,after the reform of China’s exchange rate system,the change of the price within China does not obviously affect RMB exchange rate,but the real influence on RMB exchange rate is from foreign countries. Finally,some suggestions are put forward to solve the problem.