The value of a currency is determined by the economic performance and the government stability

I think there is a correlation between a country's currency value and its economic growth. Back to the early 21st century, the Chinese government was worrying about the rapid appreciation of RMB lowering the Chinese exports. Nowadays, despite the continuous devaluation of RMB, many expect China will have a weaker trade in 2016. Of course, expensive currency lowers the exports; however, the value of a currency at most time presents people's expectation of the country's economy. Currency is backed by the government and the country's economy. If the government is unstable, the currency will devalue very quickly. For example, Hitler's Reichsmark became worthless after the Second World War. Meanwhile, if the economy is not performing well, like current China, the value of its currency will devalue as well. Because when the economy is produce insufficient amount of goods and services, then hyperinflation is very likely to take place. Therefore, the value of a currency is determined by the government stability and the economy's performance.