The Problems and Solutions in the Chinese Exchange Market

Abstract

Against the backdrop of potential interest rate cuts by the Federal Reserve, this paper delves into the issues that may be exposed in China's foreign exchange market at any moment, such as increasing capital flow risk and exchange rate volatility. This article scrutinizes the challenges laid bare by these policy adjustments and puts forth viable solutions to address them. By exploring some economic strategies such as adjusting national currency trades, diversifying portfolio risks, and augmenting foreign exchange trading quotas, this analysis aims to effectively mitigate some exposed issues of the Chinese exchange market due to the Fed's interest rate cuts and to equip stakeholders with insights to navigate these challenges effectively. Ultimately, the goal is to address and cover up the problems exposed in China's foreign exchange market under the background, and further ensure the continued stability and smooth functioning of China's foreign exchange market amidst evolving global economic dynamics.