Raising the renminbi exchange rate has both benefits and disadvantages for China

If China raises the exchange rate. Then the advantage created by Chinese exporters is gone, and at the same time, the advantage of foreign products in the Chinese market is raised.

In that case, the export of China's economy, the pillar of China's economy, will suffer a devastating blow, and the higher the short-term rise, the more complete the destruction will be, and the exchange rate must be stable in order for the economy to be stable, otherwise as mentioned above.

RMB exchange rate.

The advantages and disadvantages of the rise are conducive to overseas investment by enterprises, and the disadvantages are to increase the pressure on domestic employment.

The RMB exchange rate represents the external value of the RMB, which is formulated and adjusted by the State Administration of Foreign Exchange on the basis of the principle of independence and unity, with reference to the comparative level of domestic and foreign prices and the fluctuation of the exchange rate in the international financial market, and is announced at home and abroad on a daily basis.

The appreciation of a country's currency generally indicates that the country's economic situation is good, because under normal circumstances, only when the economy grows healthily and steadily, the currency can appreciate. China still has a high foreign trade surplus.

and huge foreign exchange reserves.

China's economic growth is still the most interesting scenery in the world, so the long-term trend of currency appreciation will not change, which is conducive to reducing the pressure of external debt repayment, and the rise of the RMB exchange rate will reduce the amount of local currency required for the repayment of foreign debt and interest correspondingly, thereby reducing the burden of external debt to a certain extent, and the appreciation of RMB can reduce inflation.

pressure effectively cools the overheated macroeconomy.

Due to the undervaluation of the RMB exchange rate, there is a lot of hot money in the world.

inflow into China, causing an overheated economy and a real estate bubble.

expansion, and the appreciation of the renminbi can be a more effective solution to this problem.

For a long time, there was a general belief that the renminbi exchange rate should always be in a state of appreciation, and if the renminbi exchange rate was slightly flustered, the market was full of worries. It is true that the depreciation of the renminbi has a certain impact on China's economy, for example, it will prompt a large number of international capital to bet on the appreciation of the renminbi to flow out of China in the short term, which will further intensify the outflow of international capital, which will lead to higher financing costs for domestic enterprises, and further worsen the financing situation of small and medium-sized enterprises, and will have a greater impact on those real estate enterprises that rely on hot money for a long time to survive, and even lead to the danger of collapse of real estate enterprises, which will further increase the risk of China's entire financial system.

The renminbi has continued to appreciate by 5% in recent months, and if the renminbi continues to appreciate, what will be the knock-on effect on individuals, businesses, the economy and society? Historically, capital harvesting due to sharp fluctuations in exchange rates has been common.

The impact is [reduced].

1.Exports decrease Imports increase ,2The cost of foreign investment has increased.

3.This eventually led to a decline in domestic production and an increase in unemployment.

1.Exports increased and imports decreased.

2.The cost of foreign investment has been reduced.

3.Enhancing the international competitiveness of domestic products is conducive to domestic enterprises [going global]4Consumption in the country is relatively cheap. Foreign tourism has increased.

The exchange rate refers to the comparison and exchange rate between the currencies of two countries. The RMB exchange rate refers to the ratio and exchange rate between RMB and foreign currencies. So do netizens know what impact the RMB exchange rate has? Interested netizens, let's take a look.

1. The appreciation of RMB is conducive to Chinese enterprises to make overseas investments and open up international markets. Our country vigorously encourages its own enterprises"Get out there"Many large enterprises have also begun to implement international business strategies, and the appreciation of RMB enables enterprises to obtain foreign resources at a lower cost, which enhances the overseas purchasing power of RMB and reduces the cost of overseas mergers and acquisitions.

2. The appreciation of RMB is conducive to the technological upgrading of enterprises and the enhancement of independent innovation capabilities. In order to transform from labor-intensive to technology-intensive, export enterprises must carry out technological innovation, and the demand for imports of advanced technology and equipment will continue to expand. The appreciation of the renminbi enables enterprises to purchase advanced technology and equipment with less funds, directly reduce the cost of technology research and development of enterprises, and indirectly promote enterprises to continuously update technology, improve management level, improve product quality, and enhance core competitiveness, thereby promoting China's industrial restructuring and improving China's position in the international division of labor.

3. The appreciation of the renminbi is conducive to the development of the service industry and the service industry. The appreciation of the renminbi can be the most efficient reshuffle of export enterprises, and the enterprises with low added value and technical content in the manufacturing industry will be eliminated, which is conducive to changing the situation of excessive concentration of resources in the manufacturing industry in the past, and guiding more resources to the service industry, so as to promote the benign development of China's industrial structure, and then promote the optimization and upgrading of China's industrial structure, promote the rapid development of service industry and service, and finally realize the coordinated development of services and commodities, and improve the comprehensive competitiveness of the whole country.

4. Internal appreciation is conducive to depressing domestic bulk commodities, controlling inflation, regulating real estate, promoting institutionalization, reducing the function of circulating money, causing losses to high-quality listed companies, damaging the country's real economy, financing difficulties for private enterprises, and increasing the risk of economic recession.

5, foreign appreciation is conducive to pushing up the export of foreign manufacturing enterprises, in the international market due to the lack of independent science and technology, and lose a certain advantage, and the competitiveness has declined sharply, so that the country's exports are reduced, economic growth is weak. At the same time, reducing the import of products, so that foreign enterprises have a technological advantage at the same time, but also a cost advantage, and increase exports to China, through China's first, so that the domestic economy can recover.

6. Reduce the education cost and living cost of domestic students studying abroad, which is conducive to international students settling abroad, learning advanced concepts in foreign countries, and living comfortably, promoting the global spread of Chinese talents and spreading Chinese culture.

7. It is conducive to the acquisition of enterprises or businesses that are about to go bankrupt by Chinese enterprises in the world, promote China's foreign investment, and help the economic recovery of countries around the world, which reflects China's good demeanor.

That's all for the impact on the RMB exchange rate.

Potential benefits of RMB appreciation:

Good for China's overseas investment.

For the renminbi to move in the direction of regional and international currencies, it is conducive to reducing the pressure on foreign debt repayment and interest repayment, and the profitability of a number of projects relying on foreign loans will be improved, and the international status of China's GDP will be enhanced, which will have a negative impact

The number of foreign enterprises investing in China will decrease.

It is not good for the development of China's domestic tourism industry. Person.

China's huge foreign exchange reserves will shrink significantly. Middle.

China's economy is in danger of spiraling out of control.

For example, if you can buy something for 1 US dollar for 1 RMB, now that the exchange rate has increased, that is, RMB is worth more, you can now buy something for 2 US dollars for 1 RMB.

The consequence of this phenomenon is that export-oriented enterprises, because their raw materials, labor, etc. are settled in the country, according to the RMB, can be seen as the cost is constant. However, if you continue to sell 1 dollar, it will definitely be a loss, but selling 2 US dollars, which is equivalent to products from other regions, will lose competitiveness, which leads to export difficulties.

Since exports are unprofitable, many enterprises will turn their products to domestic sales, the market is already seriously overstocked, and the original export of the part of the product will be digested, which will inevitably cause a war, the consequence is that consumers will benefit in the short term, and then eliminate a part of the backward production capacity.

The renminbi is more valuable, is it a good thing or a bad thing?

Recently, the US dollar has been largely stable, but the renminbi has continued to appreciate. There are three main reasons.

It is not conducive to foreign trade exports, which has a great impact on a large exporting country like ours that relies on processing industries, and can lead to the unemployment of hundreds of millions of people. At the same time, the US Treasury bonds we buy will shrink. 、、

The offshore RMB exchange rate broke 7, indicating that the economy did have certain difficulties in the second half of the year, increasing the pressure of capital outflow, on the basis of the global economic downturn, it is normal for China's economy to fall a little bit, and the overall look at China's employment pressure, the GDP growth rate in the second half of the year may drop to 6%.

But don't take the opportunity to promote any theory of China's recession, because the economic data of all countries in the world is very miserable, very miserable, and it will be even worse, and if you compare horizontally, you will find that China's 6% data is crushing for other countries.

The exchange rate is the rate at which one currency is exchanged for another, that is, the exchange rate of one currency for another. For example, if 1 100 foreign currencies are used as the standard and converted into a certain amount of local currency, it is called the direct pricing method. China and most countries use the direct pricing method.

Exchange rate = amount of domestic currency The amount of foreign currency, the higher the exchange rate, the higher the depreciation of the domestic currency, that is, the higher the exchange rate of the RMB, the depreciation of the RMB, and the lower the depreciation of the RMB. The increase in the RMB exchange rate will be beneficial to China's exports, but not to imports. Because the increase in the RMB exchange rate indicates the depreciation of the RMB, for goods exported abroad, the exchange rate between the RMB and the US dollar is 8:

1 time, 1 US dollar can buy 8 yuan of goods, and now the RMB depreciation, such as the exchange rate to 10:1, then 1 US dollar can buy 10 yuan of goods, so the goods are more competitive in foreign markets; For imports, foreign goods enter the country, domestic people originally only need 8 yuan to buy 1 dollar of goods, and now the RMB has depreciated, and it takes 10 yuan to buy 1 dollar of goods, ****, the number of foreign goods consumed by local people has decreased, and the lack of competitiveness of foreign goods in the domestic consumer market has inhibited imports. And vice versa.

The depreciation of the renminbi is to lower the exchange rate.