Excess or underestimation of exchange rates always has a benchmark. The concept of equilibrium exchange rate itself has a variety of definitions, which makes the exchange rate equilibrium estimates themselves first faced with the problem of inconsistency. Based on the analysis of the special characteristics of the exchange rate linked to the economic equilibrium of trade-related countries, this paper argues that the concept of equilibrium exchange rate can not be established simply by using the market equilibrium of the general market equilibrium. Judging the equilibrium rate of a country's exchange rate must be based on the overall balance of the economy of a country, the economic climate requirements and the balance of payments.

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