Abstract:For the impact of RMB real effective exchange rate on China's foreign trade, the monthly data from January 2013 to July 2017, by constructing VAR model, reveals long-term equilibrium relationship and the bi-directional Granger causality between real effective exchange rate and China’s foreign trade, which is RMB real effective exchange rate will have a negative impact on China's foreign trade, that is, if the real effective exchange rate rises, then the foreign trade will decline. Combing with the empirical results, this paper gives some suggestions: to stabilize the RMB exchange rate; enhance ties with countries with close trade and reduce trade frictions; RMB internationalization should give priority to cross-border settlement of the RMB and improve the trading status of RMB.