This is regarding China/Hong Cong's Monetary System and I have the following questions, would you please provide the answers?

1. Is the below understanding correct on exchange rate impacts?

If 75 INR = 1 dollar goes to 65 INR = 1 dollar ==> Appreciation of the currency INR WRT Dollar

• value of INR is increased with respect to the dollar
• value of the dollar decreases with respect to the INR
• which means there is a high demand for INR currency
• Therefore, there are people with dollar currency who are willing to buy more products that have INR currency
• Exports increases - people from countries with dollar currency buy more products in countries with INR Currency
• Import decreases - people from countries with dollar currency get fewer benefits from the products they buy in countries with INR Currency

1. What is currency manipulation? Can you please share simple examples to explain how it affects the economy?
2. How can we tell whether or when a country has manipulated its currency?
3. What does the 1997 Asian financial crisis have to do with Asian countries piling U.S. dollar reserves at the beginning of the 21st century?
4. Has the People Bank of China always tried to keep the value of its currency low?
5. Why do you think the Hong Kong and US nominal interest rates follow such a similar path? Why do you think they are not exactly identical?
6. Using the figures provided in Hong Kong's case, explain how Hong Kong's money supply changed between 2017 and 2020.