michael lombardi profit confidential In economic terms, the benefits of holding any two currencies should be equal in the equilibrium of the foreign exchange market, which is: Ri=Rj (interest rate parity). Here, R stands for yield, and I and j represent currencies of different countries. If the benefits of holding two currencies are unequal, you will have A arbitrage: buy A kind of foreign exchange and sell B foreign exchange. In 2017, we have seen: Interest rates in different countries have different connotations. In China, interest rates typically refer to bank interest rates, further pointing to the pboc's benchmark deposit and lending rates. In the United States, mainly refers to the bond market interest rates, the fed adjustment of benchmark interest rate, also not have mandatory administrative benchmark interest rates, but through open market operations after determine its rate for overnight loans between Banks.