What are the benefits and disadvantages of a stronger renminbi? Here s an example

How did it come to mind to ask this question? The appreciation of the RMB will be lower than the foreign exchange rate of the US dollar, and the foreign trade export is paid with the US dollar as the intermediary. That is, the exported goods may be loss-making, unprofitable, or at least reduced.

Personal opinion (*0*).

What are the advantages and disadvantages of RMB**? The purchasing power of the renminbi has increased compared to other currencies. The reason for the renminbi** comes from the internal dynamics of China's economic system and external pressures. What are the advantages and disadvantages of RMB?

1. The benefits of RMB appreciation.

1. Improve China's purchasing power, and we buy foreign commodities equal to others selling them to us at a discount of seven or eight percent.

2. In the same way, China's investment in foreign countries and the purchase of foreign assets are cheaper and more convenient than before.

3. The relevant personnel in the economic circles believe that the amount of RMB **, a large amount of capital entering China, is enough to offset the increase in investment costs and the decrease in investment amount, which is greatly exceeded.

4. Since the advantage of low labor source is offset by the rise of RMB, the rise of RMB can promote the transformation of China's industrial structure from labor-intensive to high value-added.

5. The appreciation of the RMB can lay the foundation for the RMB to go to the world, and the appreciated RMB can bring confidence to the people of the world, and then the RMB will become an international currency of course.

6. Social welfare has been directly improved, the purchasing power of the renminbi has increased, and prices in all aspects have decreased accordingly.

7. It is profitable from the short-term effect. In fact, people can buy more things for the same monetary value. However, in the long run, it is not conducive to the economic development of our country. The most obvious is the import and export of the above**.

Second, the disadvantages of RMB appreciation.

1. The country's foreign exchange reserves are lost with the increase in the magnitude of the increase.

The positive effect of the moderate appreciation of the RMB:

It is conducive to continuing to promote the reform of the exchange rate system and even the financial system.

It is conducive to solving the problem of imbalance with the outside world. Due to the implementation of a single exchange rate system pegged to the US dollar, Chinese products have always maintained a "cheap" price.

price". A moderate and slight appreciation of the renminbi can, to a certain extent, alleviate the contradiction of imbalance in the balance of payments.

It is conducive to reducing the production costs of imported commodities and export enterprises based on imported raw materials.

It is conducive to reducing the cost of outbound travel for Chinese citizens.

It is conducive to prompting domestic enterprises to strive to improve the competitiveness of their products. Our company has long occupied the international market with low **, so that foreign importers can benefit. If the price is raised after appreciation, it may lose the market; If you don't raise the price, you may increase your losses.

Therefore, we can only improve productivity and scientific and technological content, reduce costs, improve quality, and enhance competitiveness.

It is conducive to reducing the demand for domestic housing from foreign funds and reducing the real estate bubble.

The adverse effects of the renminbi's excessively rapid appreciation are:

It will reduce the profitability of enterprises for a certain period of time, reduce competitiveness and share of the international market, and lead to a decrease in exports.

Competition in certain domestic areas will be intensified. Some manufacturers of export products will join the ranks of competition in the domestic market, making the already fierce competition in the domestic market even more fierce.

This will result in relative overproduction in certain areas. For example, 40 60 of the export commodities such as food, clothing, and stationery have been transferred to the domestic market, which will inevitably lead to an oversupply of products for a certain period of time.

It will exacerbate employment pressures, especially many migrant workers who will lose their jobs.

It will increase the cost of foreign investment in China, and the use of foreign capital may show a gradual decline.

This will lead to an increase in the cost of overseas tourists to travel on the mainland, which may lead them to travel to other countries or regions. (China Youth Daily.)

The appreciation of the renminbi will cause the import goods** to decline, and the export goods** to rise, affecting the import and export**. But it will also prompt China to invest abroad and introduce foreign advanced technology, and it is rumored that the United States is forcing the renminbi to appreciate, which can reduce their arrears to China, and can also affect China's economy by reducing imports and exports.

The advantage is that its status in the world will be enhanced, and the disadvantage is that foreign countries also hold China's government bonds. The reason for the appreciation is the increase in the level of production of the people.

The appreciation of the renminbi means that its status will rise, and China's ranking in the world will also rise, however, China's economy will temporarily become slow, because the exchange rate issue, as well as the pressure of the country, etc., have to be comprehensively considered, and my status in the world will gradually improve, so the renminbi will also appreciate.

It is conducive to the growth of the national economy, promotes the progress of enterprise technology, and is not conducive to the reduction of China's exports and farmers' income. Reason 1, the policy of a weak dollar 2, the means of inflation control.

What do you think? For example, an American wants to travel to China·· The exchange rate for 10 US dollars is 1:7··· Changed to 700,000 yuan in the future, but the tour was over, only 600,000 was left, and then he wanted to go back·· Converted back to the US dollar, the result of which the RMB appreciated, 1:6, and the result was converted back to 100,000 US dollars··· Finally, to sum it up·· The man spent it for free in China

Not! It can only be said that our renminbi is even less valuable! (devalued).

To put it simply, our money is more valuable, and the original one dollar can be spent as two yuan, of course, it is very cost-effective. However, from the perspective of national development, the appreciation of the RMB will cause a decline in China's export capacity, which is not conducive to the development of China's foreign economy.

The poor don't get the benefits, and the benefits are all taken by the bastards.

The amount of currency issued by China is issued according to the amount of reserves and the total amount of foreign exchange, so the external appreciation means the internal depreciation. Appreciation is not good for us.

It's not good, because it appreciates, so the price **.

There are pros and cons, the key depends on how you look at it.

Yes, to improve the flow of goods, to improve China's international status, and so on...

You know, if it appreciates quickly, it's going to be worthless like Japan.

It's not good, prices are skyrocketing.

There is no benefit, in the past 20 years, my country has been suppressing the appreciation of the RMB, but the international situation is compelling, and appreciation is inevitable. The most direct loss of appreciation is the shrinkage of China's foreign exchange reserves.

The appreciation of the renminbi will reduce the export of products produced by our country, and the employment pressure we are facing will increase, and there will be more unemployed people, which will have a great impact on the export product economy, and employment will have an impact on many aspects, and the only benefit is that traveling abroad will save money.

Love is nothing, no money, nothing is afraid.

Good for exports, not good for imports It is necessary to look at the overall strategy of the country.

You tell me?

Now we are buying what is going up, and what we are selling is cheap.

So many foreign exchange Chinese themselves can't use it.

Yes, traveling abroad can save money.

Answer: The concept of RMB appreciation mainly refers to the increase in the ratio of RMB to foreign currencies, and at present, the main international currencies are the US dollar, the euro and the British pound, and the RMB is becoming more and more valuable, and the foreign currency is depreciating more and more, which is called RMB appreciation.

The appreciation of the renminbi will mainly make China's local currency more valuable and the US dollar more worthless, so it will cause the profits of China's export enterprises to decrease, resulting in export enterprises not having the advantage of low prices when exporting; In addition, it will also have a certain impact on Japan's foreign exchange reserves and daily life.

The renminbi appreciated.

It's that the renminbi is more valuable.

There are pros and cons to appreciation.

A simple example.

USD to RMB 8:1

If it appreciates.

Let's say 5:1, then do the math.

The United States owes China $800 billion.

If it appreciates. Then they only need to pay back China 500 billion dollars.