The pros and cons of RMB devaluation, the advantages and disadvantages of RMB devaluation

It has nothing to do with us ordinary people.

Positive impact 1. It is conducive to China's imports.

2. The cost of raw material import-dependent manufacturers has decreased.

3. The ability of domestic enterprises to invest abroad has been enhanced.

4. The profits of foreign-invested enterprises in China have increased.

5. It is conducive to the study and training of talents abroad.

6. The pressure on repaying principal and interest on foreign debts has been reduced.

7. It is more cost-effective to sell Chinese assets.

8. The international status of China's GDP has improved.

9. Increase state tax revenue.

10. The international purchasing power of the Chinese people has increased.

1. The renminbi is not freely convertible under the capital account, which means that the mechanism that determines the exchange rate is not the market, and there is no point in changing it.

2. The appreciation of the RMB will bring greater pressure to China's deflation 3. The appreciation of the RMB exchange rate will lead to a decrease in the attractiveness of foreign investment and reduce foreign direct investment in China;

4. It has caused great harm to China's foreign trade exports.

5. The appreciation of the RMB exchange rate will reduce the profit margin of Chinese enterprises and increase the pressure on employment 6. The fiscal deficit will increase due to the appreciation of the RMB exchange rate, and at the same time affect the stability of the monetary policy, which will have short-term disadvantages and long-term benefits.

In the short term, the appreciation of the renminbi will increase unemployment profits. Corporate earnings are declining.

In the long run, it can promote industrial upgrading and structural transformation.

From the perspective of enterprises, by appreciating the renminbi to support technology-intensive and capital-intensive enterprises and promote industrial upgrading and structural transformation, in the long run, it is to fundamentally improve the international competitiveness and anti-risk ability of China's foreign trade. From the perspective of attracting foreign investment, although the investment cost of foreign capital has increased, the degree of impact on technology-intensive foreign-funded enterprises is much less than that of labor-intensive foreign-funded enterprises. This is also in line with the needs of China's industrial policy and scientific and technological progress policy.

Encouraging foreign capital to participate in the process of domestic industrial restructuring and optimization, so that more and more enterprises can turn to the application of higher-end technology, take the road of low consumption and high efficiency, and develop more competitive products, can gradually get rid of China's image as the "world factory" of primary manufactured products. The negative impact of RMB appreciation on exports will help to adjust the market target structure of products, so that foreign investment projects will pay more attention to the domestic market and stimulate economic growth by increasing domestic demand, thereby reducing China's economic dependence on foreign trade and enabling China's economy to develop in a more balanced, stable and sustainable manner.

Summary. Hello dear, I'm glad to answer for you! The advantages and disadvantages of RMB depreciation are as follows:

Benefits of RMB depreciation:1Promotion of exports:

The depreciation of the renminbi will make China's export commodities more favorable, improve the competitiveness of Chinese commodities, promote exports, and increase the income of export enterprises. 2.Reduced imports:

The depreciation of the RMB will make imported goods ****, making people more inclined to buy domestic products, thereby reducing import demand and stabilizing the deficit. 3.Promoting economic development:

The depreciation of the renminbi will make China's domestic enterprises more competitive and more motivated to explore markets and promote economic development. Disadvantages of RMB depreciation:1

Inflation: The depreciation of the renminbi will lead to imported goods****, pushing up the domestic inflation rate. 2.

Currency loss: The depreciation of the renminbi will cause people to buy foreign exchange to preserve its value, resulting in a large loss of foreign exchange and a decline in the country's foreign exchange reserves. 3.

Reducing international trust: The depreciation of the renminbi may be seen as an illegal interference in the exchange rate, reducing the international community's trust in the Chinese economy and lowering the country's image. 4.

Exacerbating Debt Problems: A weaker renminbi will exacerbate China's debt problems by raising the cost of overseas debt.

Hello dear, I'm glad to answer for you! The advantages and disadvantages of RMB depreciation are as follows: Benefits of RMB depreciation:

1.Promote exports: The depreciation of the renminbi will make China's export commodities more favorable, improve the competitiveness of Chinese goods, promote exports, and increase the income of export enterprises.

2.Reduce imports: The depreciation of the RMB will make imported goods more inclined to buy domestic products, thereby reducing import demand and stabilizing the deficit.

3.Promoting economic development: The depreciation of the renminbi will make China's domestic enterprises more competitive and motivated to explore markets and promote economic development.

Disadvantages of RMB depreciation:1Inflation:

The depreciation of the renminbi will lead to imports and blind goods, pushing up the inflation rate in the country. 2.Currency Drain:

The depreciation of the renminbi will cause people to buy foreign exchange to preserve its value, resulting in a large loss of foreign exchange and a decline in the country's foreign exchange reserves. 3.Reducing international trust:

The depreciation of the renminbi may be seen as an illegal interference in the exchange rate, reducing the trust of the international community in China's economy and lowering the country's image. 4.Exacerbating the debt problem:

A weaker renminbi will exacerbate China's debt problems by raising the cost of its overseas debt.

The depreciation of the renminbi refers to the decline in the exchange rate of the renminbi relative to other currencies, that is, more renminbi is required at the same time to exchange for the same amount of other currencies. It usually occurs in the foreign exchange market, due to various factors, such as economic growth rate, inflation, interest rate changes, political stability, etc., resulting in a decrease in the demand for other currencies in the RMB, resulting in the depreciation of the RMB. The depreciation of the renminbi will make exports more competitive, but it will have an impact on imports**, as well as domestic assets** and inflation.

The renminbi depreciated.

Disadvantages: 1. When the RMB depreciates, it means that the RMB in their hands is worthless, and if the people go abroad to study or travel, they will spend more money than before, and indirectly make foreign goods ****, and the people spend more on foreign goods;

2. In the case of people's depreciation, import-oriented industries will increase the cost of imports and indirectly reduce the profits of enterprises, such as some transportation, iron and steel, and paper industries.

Benefits of RMB depreciation:

1. The depreciation of RMB can reduce the cost of foreign tourism in China and promote the development of tourism;

2. The impact of RMB depreciation on export enterprises and overseas direct investment will eventually be reflected in employment, because most of China's export products are labor-intensive products, and the RMB depreciation will increase exports, thereby alleviating the employment pressure of the people to a certain extent.

Prices have been hit hard.