Exchange rate

My major always can be connected to many important international events. In recent moths, the exchange rate catch all over the world eyes. The most important thing in recent moths is the exchange rate between American and China.

International market will determined the exchange rate. In the world, people use the golden as a standard. It is because that golden is not belong to any countries' currency. Every country do not want to lose money in the international market, therefore, actuaries use their knowledge to help country make others' money. For example, the government of China recent loan to the United State. But according to the international market, the exchange rate between China and America is always changing. If America want to give the money back into China, they need to find a time when the rate become low. If the exchange rate between China and America lower than before, it means that China lose money and America get more money from China. But if the exchange rate become higher than than before, it means that China get more money from America, and America lose money. Last moth the exchange rate between China and America higher than 6.2. It means that one dollar can get 6.2 RMB. But in this month it become 6.19. It means that America will lose 0.01 dollar in every RMB unit. Therefore, the actuarial science become more important than before. Actuaries need to  analysis a actual time or period, and during this time help country to make deal to get more profit. This is just like a war, a currency war, and it cannot be end forever.

work cite:
即期汇率一度跌破6.2 人民币再创11个月新低. Sina international finance. 羊城晚报.20th March 2014. 20th March 2014.