Why the appreciation of the renminbi will attract foreign capital inflows

Wrong. Appreciation will drive away foreign companies, because if the same goods are cheaper in China than in foreign countries, foreigners will be attracted to them, such as Wenzhou lighters are seven cents a piece, while German lighters cost dozens of euros. That is, of course, Wenzhou lighters are competitive.

However, if the value of the same goods is appreciated (the price increases), the quality of the same goods is not comparable to that of foreign countries, and the only advantage is gone, so it will not be competitive.

For the common people, if the value is appreciated, the price will be the first, and there is no benefit.

Because of the continuous ** deficit of the United States with China in recent years, they have been provoked.

So they put pressure on China** to appreciate the yuan.

China has symbolically risen by a few cents. Deal with the United States. There will be no big fluctuations.

This is the main reason for the appreciation of the renminbi.

For example, 100 US dollars can be exchanged for 800 yuan. A year later, the RMB appreciated, and the USD/RMB was 1:7, and 800 RMB was exchanged for US dollars, which could be exchanged for US dollars (800 7), making a profit in US dollars.

My understanding is that the cost of foreign investment has risen, for example, when people invested, it was 100w US dollars, and three years later because of the appreciation of the RMB, the corresponding only 90w US dollars were returned to others.

**RMB, expected appreciation.

With the continuous development of social economy, in real life, I believe that many friends have encountered a lot of problems, especially for the question of why the depreciation of the RMB will be conducive to the introduction of foreign capital is also very puzzled by many friends, in fact, the reason why the depreciation of the RMB is conducive to foreign investment, mainly because foreigners can spend less money to do more when Chinese invest.

First of all, we must understand such a problem, that is, after the depreciation of the RMB, it is actually very conducive to the introduction of foreign capital, because when foreigners invest in China, they can spend less money to do more, for example, the original exchange rate of RMB to US dollars, then spend 100 US dollars to exchange RMB for 613 RMB, if the current exchange rate is, 100 US dollars can be exchanged for 674 yuan, which will have a great advantage for foreigners. Even for many foreigners, this will allow many foreigners to do more when investing.

And once the cost of investment comes down, then investing in China, foreigners only need to spend less money, they can do more things, and even hire more workers to help themselves deal with related work, and it will be cheaper to buy things, including our land, labor, water and electricity, raw materials, etc., in the same case of using 100 US dollars, after the depreciation of the RMB, then the US dollar will have more advantages. It will even be possible to achieve better investments in our country.

To sum up, we can obviously know that after the depreciation of the RMB, the reason why it can attract more investment is because of this reason, because this can make many foreigners spend less money when investing, and can help more foreigners to invest, so when our RMB depreciates, more foreigners will come to invest in China.

The main reason is that after the depreciation of the renminbi, foreign currencies have become valuable, so it is conducive to the introduction of foreign capital.

This is because if the renminbi depreciates, it will be conducive to lowering prices to a certain extent, and at the same time, some enterprises will also introduce foreign capital, which will be beneficial to the development of society.

Because the exchange rate of each country to exchange RMB is different, and in the market, the value of RMB is very high, so depreciation is conducive to the development of foreign trade.

It may be because the exchange rate of each country is different, and there is also a different market value, so the depreciation of the RMB is conducive to the introduction of other resources.

It is true, and after the depreciation of the renminbi, the inflow of foreign capital will be more serious, and then it will also reduce people's quality of life, causing people's economic pressure to become more and more intense.

The depreciation of the renminbi is conducive to the introduction of foreign capital, and the outflow of capital will definitely occur, and in this case, the renminbi will continue to decline, then it will cause a big financial crisis, which is very terrible in this case.

Such a statement is not correct, if the renminbi is devalued, it will not be conducive to the introduction of foreign capital, and the incoming of foreign capital will make the renminbi depreciate even more, which is not good for the development of the renminbi.

It's not true, there is no claim at all, and there is no evidence of some evidence to prove it, so I don't believe it.

The appreciation of the renminbi will cause capital inflows due to interest rates.

falling interest rates, domestic capital outflows; Interest rates are rising, and foreign capital is flowing in. This arbitrage, caused by the interest rate differential between the two places, is a major way of international capital flows. Capital flows will cause changes in supply and demand in the foreign exchange market, which will have an impact on the exchange rate.

Under normal circumstances, a country's higher interest rates and a credit crunch will lead to an increase in the value of the country's currency; Otherwise, it leads to a depreciation of the currency.

On November 6, 2002, the Federal Reserve cut its Federal** interest rate by 50 basis points, a drop that was greater than the market expected. Relatively speaking, RMB interest rates have remained largely stable, and the PBOC is not expected to make a decision to cut interest rates in the near term.

As a result, the relative difference in economic growth and interest rate levels between China and other countries (regions) is formed, which is easy to attract the entry of foreign capital and the return of China's foreign capital, thereby driving the RMB exchange rate higher.

The appreciation of the renminbi means that the same amount of money will be invested, and the profit will be higher than before the appreciation, so the more capital investment, the greater the profit.

This is inevitable: exchange dollars for yuan, and when the value of the yuan appreciates almost, you will make money by exchanging yuan for dollars.

For example, now 100 dollars are exchanged for 670 yuan.

If the renminbi appreciates next year, 1 dollar can be exchanged for 6 yuan, and 670 yuan can be exchanged for 111 (670 6) dollars, and 11 dollars will be earned.

If the appreciation of the renminbi is expected, this will have a huge attraction for international capital, especially international financial capital. Since China's accession to the WTO in 2001, financial capital (banking, insurance, insurance) has gradually replaced industrial capital and become the main form of capital entering China. The appreciation of the RMB is expected to accelerate the inflow of international capital into China through QFII, and may also significantly increase the inflow of speculative capital, the inflow of financial capital will undoubtedly increase the supply of funds in the domestic capital market, including the bond market, which is conducive to the bond market, but also increases the factors of instability. It's going to be a big shock to the market.