What specific operations does the central bank use to make the renminbi appreciate?

The appreciation of the renminbi is not the final decision of the central bank, it depends on the country's import and export**, the central bank's interest rate, and the face value of other countries' currencies. The central bank wants the easiest and most effective way to make the renminbi appreciate, raise the deposit rate, tighten the currency circulation, control the money printing machine, etc.

The reason for the renminbi's appreciation is due to internal dynamics in China's economic system and external pressures. Internal influencing factors include the balance of payments, foreign exchange reserves, price and inflation, economic growth and interest rates. In 2012, the exchange rate of the renminbi was in a state of flux, and by October 15, 2012, the spot exchange rate of the renminbi against the US dollar hit a new high since 1993.

Exchange controls have played a big role.

The main thing is to see the depreciation of the dollar, and the rest is hard to say.

The rapid appreciation of the renminbi will affect the stability of the exchange rate market and affect many export enterprises, so the central bank has taken decisive action to curb the momentum of rapid appreciation of the renminbi.

With the development of China's economy, the appreciation of the renminbi is very obvious, and the appreciation reflects that the renminbi is becoming more and more valuable, but there are many disadvantages in appreciating too fast. Many export enterprises do not make much money from exports because the RMB appreciates too fast, and the RMB appreciates too fast, which is easy to cause instability in the exchange rate market, resulting in many people speculating on the RMB, which is not beneficial to China's economic development. <>

First, the rapid appreciation of the renminbi will affect export enterprises. The development of the epidemic has affected the industries of many countries. China's epidemic prevention and control is very in place, and the industry recovers quickly, so it has received a lot of overseas orders, but many export companies have not made money, mainly because the appreciation of the RMB is too fast, and many enterprises are settling foreign exchange in US dollars, resulting in very little RMB after the money arrives in China, so the rapid appreciation of the RMB has a great impact on export enterprises.

The rapid appreciation of the renminbi will lead to a decline in the profits of many export enterprises, resulting in the reluctance of export enterprises to continue to do, which will have a great negative impact on the entire industry. <>

Second, the rapid appreciation of the renminbi will lead many people to speculate on the exchange rate and accumulate a lot of risks. Many countries' currencies will have a variety of trading markets, the rapid appreciation of the RMB exchange rate, so that many international speculators see the opportunity to make money, many people are investing in the foreign exchange market, trying to bet on the appreciation of the RMB, which leads to China's foreign exchange market is very hot.

The speculation on the exchange rate will accumulate a lot of risks, increase the cost of many enterprises, and produce many adverse consequences, so in order to avoid this risk, the central bank will act decisively. <>

Third, the stability of the renminbi exchange rate is beneficial to China's economic development. If any country's economy wants to develop steadily, the exchange rate must be stable, and appreciation or depreciation cannot be too fast, otherwise it will have a negative impact on the national currency and will also have a shock on the development of the economy.

In the case that the level of economic development has not been reached, rapid appreciation or rapid depreciation is very detrimental to the stable development of the country's economy, especially in today's economic globalization, this rapid appreciation and rapid depreciation will have huge problems. So we see this rapid appreciation, which actually represents a huge risk that will intensify competition in certain domestic areas. 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.

The appreciation of the renminbi is not good for exports. One can buy goods from China for $1 billion, and after the renminbi appreciates, foreign importers will have to pay millions more dollars more for the same quality and quantity of goods, and they won't get more.

Because the rapid appreciation of the renminbi will lead to the destruction of the real economy. Although it will bring a bull market to China's economy, the real economy will be hit.

The rapid appreciation of the renminbi will be greatly affected by the fact that the profits of the export enterprises will decline, the competitiveness of export commodities in the foreign market will decline, and the export volume will also decrease accordingly.

If the renminbi appreciates rapidly, it will have a great impact on labor-intensive enterprises, and it will not be conducive to the introduction of foreign direct investment, and the pressure on domestic employment will become greater, and the huge amount of foreign exchange reserves will also face shrinkage, which will affect the stability of the domestic financial market.