The impact of the rising exchange rate on China, and what is the impact of the rising exchange rate

The competitiveness of export enterprises has declined, and a large amount of foreign hot money has poured into the domestic market for speculation in the property market and the agricultural product market, resulting in rapid prices, which has a great impact.

To put it simply, one dollar of RMB can be exchanged for less US dollars, correspondingly, the imports that we can buy in RMB are also correspondingly reduced, and the cost of imports increases; And there is less foreign exchange that can be exchanged for exports. Therefore, the increase in the exchange rate is detrimental to China's import and export and reduces our international competitiveness!!

Potential benefits of RMB appreciation: good for repaying foreign debt, good for imports**, good for curbing inflation, good for China's overseas investment, good for RMB moving towards regional and international currencies.

First, it weakens the competitiveness of Chinese goods in the international market. Chinese goods enter the world market with "low prices and good quality", and the appreciation of the renminbi will inevitably affect the export of Chinese products and their competitiveness in the international market.

Second, the number of foreign enterprises investing in China will decrease. China's development experience proves that the lack of foreign investment, or the sharp decline of foreign investment, will be very detrimental to China's sustainable development. While the appreciation of the renminbi is beneficial to foreign entrepreneurs who have already invested in or have capital in China, as their assets will increase in value, it will hold back those who are about to invest in China.

Therefore, it is not good for China's economic development in the long run.

Third, it is not conducive to the development of China's domestic tourism industry. Once the renminbi appreciates sharply, it will have a negative effect on the development of China's domestic tourism industry. Of course, the appreciation of the renminbi will also promote Chinese to travel abroad, but the resulting loss of foreign exchange is also bad for China.

Fourth, China's huge foreign exchange reserves will shrink significantly. China's foreign exchange reserves are as high as 2 trillion US dollars, ranking first in the world. China's foreign exchange reserves are dominated by US dollars, and as long as the renminbi appreciates, a large amount of US dollar reserves will shrink.

Fifth, China's economy could spiral out of control. Maintaining the stability of the currency exchange rate is very important to the sustained economic development of a country, and China's financial and monetary system is still far from perfect, and once the currency exchange rate is greatly adjusted, the possibility of getting out of control is very high.

Japan is a good example of this, the yen exchange rate adjustment (big rise), the world's second largest economy into the abyss of economic chaos, from 1991 to the bursting of the bubble economy, the Japanese economy has not been able to recover.

Now let's go back to one of the benefits of RMB appreciation, which is "good for curbing inflation". In the global village, the renminbi appreciates, and we should enjoy more cheap and high-quality goods, just like the United States in the Clinton era, things are very cheap, and the people's living standards are also high; Japan is the same, when the yen exchange rate is greatly adjusted, the yen is very useful, Japan took the opportunity to purchase a large number of overseas assets, and now every year on the accounting settlement day, trillions of dollars are remitted back to Japan (people who engage in foreign exchange have a soft spot for this wave of **), and now Japan is stagnant at home, but its overseas income is also amazing. But why is it that our renminbi has appreciated, but we feel that it is becoming more and more difficult to use?

The value of a currency depends on its purchasing power parity. The purchasing power of the renminbi is actually decreasing, that is, the renminbi is actually depreciating domestically!! This is unique in the world!

Due to the appreciation of the renminbi, our foreign exchange reserves are suffering the price of losing an aircraft carrier every three months, which means that we are all working for the US empire.

If we violate the laws of nature, we will be punished by it, and we will not have any such lessons?

Export costs have risen and import costs have fallen.

Family, you must have already experienced it! The renminbi has appreciated sharply! From the end of May to the present, the RMB exchange rate has exceeded 3,600 basis points in more than three months. What is this concept? It's almost equivalent to doing nothing in these three months, and making a net profit of 30,000 yuan!