How the RMB exchange rate against the US dollar is priced to develop 5

There are basically two ways, the first is to follow the laws of the market, which is determined by market supply and demand. When looking at exchange rates, you can think of the U.S. dollar as a commodity.

What are the benefits of pegging to the dollar?

One of the most significant benefits is the elimination of uncertainty. For example, a company may produce very well and its products sell well in foreign markets. However, if the exchange rate changes suddenly, a company that would have been profitable may turn into a loss.

If the production cost of a product is 8 yuan, at the exchange rate of 1 US dollar to 10 yuan, the company could have exchanged 10 yuan for every 1 US dollar of product sold in the United States, and the profit margin is about 25%.

But if the exchange rate suddenly changes to 8 yuan for 1 US dollar, the company can only exchange 8 yuan for every 1 US dollar of goods sold, and the profit margin is 0%.

If the exchange rate is always 1 USD = 10 RMB, enterprises do not have to worry about the impact of exchange rate fluctuations. Therefore, companies do not want to see exchange rate instability. A stable exchange rate can bring a relatively good production environment to enterprises.

What problems could be with a peg to the dollar?

The allocation of resources should be determined by the market, and the exchange rate is a relatively special commodity, although we use cabbage as an analogy, but the exchange rate cannot be completely equivalent to cabbage after all.

Pegging to the US dollar is essentially the implementation of ** control in the foreign exchange market, ** control will inevitably lead to the misallocation of resources.

Pegging to the U.S. dollar may reduce uncertainty about companies' exports to the United States, but it may also increase the uncertainty of exports to other countries, such as Japan.

For example, if the exchange rate of the U.S. dollar against the yen changes to 140 yen per dollar, it appreciates by 40%. Since the renminbi is pegged to the dollar, the renminbi has also appreciated by 40% against the yen.

Under such circumstances, goods exported to Japan with a price tag of 100 yen that used to be able to be exchanged for renminbi can now only be exchanged for renminbi due to appreciation. In this way, companies will suffer and exports to Japan will be reduced.

China exports not only to the United States, but also to other countries, so pegging to the US dollar eliminates the uncertainty of exports to the United States, and increases the uncertainty of exports to other countries due to the frequent changes in the exchange rate of the US dollar against other countries.

Exchange rate regimes pegged to a basket of currencies or baskets of currencies are designed to mitigate the negative effects of these problems.

Equality of value. A piece of bread is yuan in China, and 1 dollar in the United States, but the exchange rate is calculated by a combination of more than 2,000 items, and the exchange rate also has many factors, mainly because the dollar is now in a hegemonic position, which has a great impact on the currencies of other countries, such as foreign exchange reserves.

The exchange rate is a comparison between two currencies, and the country's supervision of the RMB is very strict, in order to prevent the economic bubble from becoming too big! This is mainly due to the passive appreciation of the renminbi caused by the depreciation of the US dollar. For example, 1 US dollar can be exchanged for RMB yuan, if the RMB remains unchanged and the US dollar depreciates, then 1 US dollar can only be exchanged for RMB yuan.

It is also true that the RMB will take the initiative to appreciate, but it is just a reference to the change of currency!!

Quite simply, it's equality of value! A piece of bread is yuan in China, and 1 dollar in the United States, but the exchange rate is calculated by more than 2,000 items, but the exchange rate also has many factors, mainly the US dollar is now in a dominant position, which has a great impact on the currencies of other countries, such as foreign exchange reserves!

Summary. The trend of the US dollar directly affects the value of China's import and export products** and foreign exchange assets. The research in this paper shows that the depreciation of the US dollar against the RMB will be a medium- to long-term trend;

What is the impact of the trend of the USD/RMB exchange rate on China's economy?

The trend of the US dollar directly affects the value of China's import and export products** and foreign exchange assets. The research in this paper shows that the depreciation of the US dollar against the RMB will be a medium- to long-term trend;

On the one hand, the adverse impact of the weak US dollar exchange rate on China's economy is mainly reflected in imported inflation, RMB appreciation, impairment of foreign exchange assets, exchange rate fluctuations and intensified speculation. On the other hand, the appreciation of the renminbi will also have a certain beneficial impact on China's economy, which is mainly reflected in the promotion of industrial structure upgrading, which is beneficial"Inflation management", promote imports and expand domestic demand, which is conducive to China's foreign capital export. This paper takes Guangzhou City, which has a large degree of dependence on foreign countries, as a specific analysis.

1 RMB = US Dollar.

1 USD = Chinese Yuan.

The exchange rate of the Chinese yuan against the US dollar is: It means that 1 yuan can be exchanged for US dollarsThe exchange rate of the US dollar against the Chinese yuan is: It means that 1 US dollar can be exchanged for yuan.

The meaning of "right" in the exchange rate is the meaning of exchange, for example, RMB to US dollar means that RMB is exchanged for US dollars, and vice versa, it is US dollars for RMB.

The exchange rate of the RMB to the US dollar is, which is the exchange rate of the RMB against the US dollar. The exchange rate of the US dollar to the yuan is, which is the exchange rate of the US dollar to the yuan. The difference is that the US dollar has a larger figure in the previous exchange rate, and the RMB has a smaller figure in the previous exchange rate.

The exchange rate of the renminbi against the U.S. dollar is in renminbi against the U.S. dollar, 1 yuan = U.S. dollar, while the exchange rate of the U.S. dollar against the renminbi is in the exchange rate of the U.S. dollar for the renminbi, 1 U.S. dollar = yuan.

Summary. Hello, it's a pleasure to answer for you. I'm Arlene, a little expert in finance and psychology.

Graduated from Durham University in the United Kingdom, he has 7 years of experience in financial education, top 3 financial respondents, and has been certified as a psychological counselor of the Chinese Academy of Sciences, specializing in answering financial, legal, workplace, emotional, psychological and other questions. I've seen your question here, and I'm sorting out the reply, so please wait a while

Is the USD/CNY exchange rate the same thing as the RMB/USD exchange rate?

Hello, it's a pleasure to answer for you. I'm Arlene, a little expert in finance and psychology. Graduated from Durham University in the United Kingdom, he has 7 years of experience in financial education, top 3 financial respondents, and has been certified as a psychological counselor of the Chinese Academy of Sciences, specializing in answering financial, legal, workplace, emotional, psychological and other questions.

I've seen your question here, and I'm sorting out the reply, so please wait a while

It's not the same thing, the exchange rate of the US dollar against the yuan is 100 (for example) how many yuan the US dollar is exchanged for, referred to as the US dollar exchange rate, and the exchange rate of the RMB against the US dollar is how many US dollars are exchanged for 100 yuan, referred to as the RMB exchange rate.

I hope mine will be helpful to you<>

The recent sharp drop in the central parity of the currency against the US dollar has attracted people's attention, and many people are curious about what will happen to our currency in the future. Is it a constant rise, a decline, or a cyclical adjustment? That's the question we want.

Perhaps anyone who understands economics will know a view of cyclical adjustmentIt is because the international economy is actually a kind of liquidity adjustmentFor example, the normal sale of goods in a market, when this commodity declines, the public will buy more of this commodity, and will take out more money from the bank, thereby driving everyone's consumption, and the competitive goods of this commodity may also be reduced in price or find another way, on top of which it may lead to an increase in the profit of bank deposits, to attract everyone's savings, and this commodity also because of the long-term low price leads to a decline in people's desire to reduce purchasing powerEventually, it was back to the way it was. Of course, this is a not very accurate exampleBut our market is indeed like the sea, constantly fluctuating, but there is always a trend of ebb and flow, which is impossible to changeThe correction above this is only a slight cyclical downward adjustment and will not affect the overall trend.

For example, the concept that has become popular recently, called the international market, is a way to integrate with the national currency and economic system, and there are some very good domestic companiesFor example, Xiaomi accounts for more than 30 percent of India's mobile phone marketFor example, Huawei has become the global leader in 5G, and so onThese are all showing that our currency has always had great potential and has always had a certain reputation internationallyThese companies, which are mainly settled in our currency, will inevitably affect our exchange rate, so this downward adjustment is only temporary, and it will eventually go up.

The purchasing power of money is actually related to whether we are strong or notFor example, the reason why the dollar is so strong is because of the strength of the United StatesWe are also growing and have a lot of potential, this is an immutable trend, and the corresponding future trend will definitely be good!

I hope everyone has confidence in themselves and believes that our currency will be even better in the future!

In the future, the renminbi is still expected to appreciate, because the reduction of the central parity of the renminbi against the US dollar is only temporary, and it will still appreciate when the domestic economy is good.