The pros and cons of coin appreciation, the pros and cons of currency depreciation

Pros and cons of RMB appreciation: two aspects:

One. Unfavorable to the exporter: the exporter can get 1 US dollar, if the exchange rate of the US dollar against the RMB is 1:

8. The exporter finally receives 8 yuan, if the RMB appreciates, the US dollar to the yuan is 1:7 at that time, and the exporter can only receive 7 yuan in the end. For the same commodity, due to the appreciation of the renminbi, the exporter ends up earning 1 yuan less.

Two. Beneficial to the importer: Originally, the importer had to pay 1 US dollar, if the exchange rate of the US dollar against the RMB was 1:

8. The importer finally pays 8 yuan, if the yuan appreciates, the US dollar to the yuan is 1:7 at that time, and the importer only needs to pay 7 yuan in the end. For the same goods, due to the appreciation of the RMB, the importer paid 1 yuan less.

In a nutshell: the appreciation of the renminbi, the restriction of exports, the promotion of imports.

There are two aspects:

Country: It has a great impact on the current situation in our country. Because there is a lot of foreign hot money in the field of investment in our country, for example, the exchange rate is 1:

At 8, people came in with 100 US dollars for 800 yuan. If you appreciate now, let's say it appreciates by 1 times. Of course, the 800 yuan was quickly exchanged for 200 US dollars and withdrew.

Then all the money in your investment field has been withdrawn, how can you do your construction, and what will happen to half of the building?

In addition, because our renminbi is undervalued, exports take a big advantage. Because the things you measure in RMB are cheap, of course people are willing to buy things with you in US dollars, but if you appreciate in value, people won't buy them, and our exports will be finished.

Economic growth is three wagons in terms of investment, exports and consumption. As can be seen from the above, the impact on investment and exports is too great, so the country does not dare to appreciate too much. If you follow the foreigner's meaning, I can't wait for us to rise several times.

1. On the benefits of currency depreciation:

1. Export enterprises that are conducive to China can have greater competitive advantages, and the profit margins of exports will be greater;

2. It is conducive to the increase in the sales of domestic enterprise products, because the same type of imported products will be higher;

2. On the disadvantages of currency devaluation:

1. It is not conducive to the development of import enterprises, and the imported raw materials will increase the cost due to the depreciation of the RMB;

2. Increase the economic expenditure of families studying or traveling abroad.

Further Material: About the Nature of Money:

1.Money, by its very nature, is a contract between owners about the right of exchange, and the different forms of money are essentially unified. In the past, due to people's lack of understanding of the nature of money, they mistakenly divided money into different types from different perspectives, such as:

According to the commodity value of the currency, it is divided into two categories: debt currency and non-debt currency, and according to whether the exchange ratio is agreed, it is divided into convertible currency and non-convertible currency.

2.Formally, according to the commodity value of the currency, it can be divided into physical money and formal currency, and the physical currency itself is a special commodity, including the amount of value, such as sheep, ***, etc.; Whereas, formal money itself has no quantity of value, its value is contractually agreed, only contractually valued. The two forms are different, but they are unified in nature, that is, they are both agreed to be used as a medium of exchange, and both have contractual value.

The purchasing power of money is determined by the contractual value of money, but the purchasing power of physical money is also affected by the value of its own goods, which are usually less than the value of their contractual value as money.

3.In high school textbooks, the essence of money is explained as a general equivalent. This definition is merely functional, and does not actually explain the nature of money, nor does it inherently logically question why money can act as a general equivalent.