The exchange rate is the external value of a country's currency. Treating the fluctuating exchange rate is an unfailing topic in the market. Since the beginning of June 2020, the RMB exchange rate has fluctuated and appreciated, triggering heated discussions from all walks of life on whether the RMB is entering a new cycle of appreciation. After summarizing and reviewing the trend of the RMB exchange rate in the first half of the year, this book points out that the weakening of the RMB exchange rate in the previous period was primarily due to the bad news. In the next stage, the fundamentals are favorable for the stability of the RMB exchange rate, and the factors are gradually accumulating. Again, facts proved that exchange rate analysis "logic is more important than conclusion." The focus of this book on the issue of the RMB exchange rate isn’t to make short-term judgments. It aims to analyze the deeper things profoundly behind it, such as the RMB exchange rate that has gone from the continuous unilateral decline in the early stage of the "8.11" exchange rate reform in 2015 to today’s two-way fluctuations and market expectations. Also, this book explores the policy and market logic of differentiation.