The renminbi exchange rate has been appreciating, so why are China s exports still growing?

1. The benefits of RMB appreciation:

The appreciation of the renminbi may mean an increase in the status of the renminbi and an increase in the status of China's economy in the world economy.

1) The wealth in the hands of the Chinese people is more valuable, and as soon as the RMB appreciates, the money in the hands of the people will be more valuable, and China's per capita GDP global ranking can also be moved forward.

2) The reduction of China's external debt pressure and the increase of purchasing power, etc.

2. Disadvantages of RMB appreciation:

China's economic growth will slow due to the appreciation of the renminbi. It is manifested in four aspects:

1) The appreciation of the renminbi will affect China's foreign trade and exports.

2) It affects the comprehensive competitiveness of Chinese enterprises and many industries.

3) Undermine the long-term development of China's economy and cause a financial crisis in our country.

4) Speculation inevitably prevails after appreciation<>

Appreciation will depress the profit margin of export enterprises, because the profit margin of some enterprises is larger, and the problem of continuous appreciation will come. Don't believe in giving it a try?

Labor is cheaper than robots, and if China does not transform, if the labor force is **, it is estimated that Chinese factories will leave.

Tell the truth, add the data up!

China's exports grow. But the price can't be long - too expensive, and foreigners don't want it. China's future life may not always be good, and we must also think about the future.

Is the output value growing, or is the number growing?

The depreciation of a country's local currency is good for exports and bad for imports.

Without taking into account tariff changes and fiscal subsidies, in the process of foreign trade, the depreciation of the local currency can simply be regarded as the rise of foreign goods and the decline of domestic goods. The depreciation of the local currency means that one unit of foreign currency can be exchanged for more units of the local currency, and one unit of local currency can be exchanged for less foreign currency. The changes in commodities are not so frequent, so it is good for domestic exports but not good for imports.

The reverse is the appreciation of the local currency. This means that one unit of local currency can be exchanged for a lot of foreign currency, while one unit of foreign currency can be exchanged for less of the local currency. Then the domestic products have risen, while the foreign products have declined.

After the appreciation of China's RMB, the first product expressed in foreign currency will rise, most of the products exported by China are inelastic commodities such as oil, beverages, food, clothing, agricultural products, etc., after the price increase of these products, although the sales volume may decrease, but the sales volume will increase (that is, the export volume will increase).

Good news for imports, because after the appreciation of the renminbi, there is less money to pay, and it is not good for exports, because there is more money to pay.

The decline in exports is mainly due to textiles and small hardware commodities.

This kind of thing is consumed in a lot in our daily life, but it has little impact.

And the domestic price ** is structural**. Mainly vegetables in daily necessities, etc.

If exports fall, GDP will fall, and in order to boost the economy, the country will introduce loose economic policies, which will lead to inflation.

I believe that the decline in prices caused by the increase in the exchange rate has been offset by the excessively rapid increase in the price level.

The main impact of RMB appreciation on imports and exports is as follows: the export of unit commodities has risen, the export has made it difficult to export, the competitiveness in the international market has weakened, and the foreign trade volume has developed in the direction of deficit.

1. First of all, RMB appreciation refers to the appreciation of the RMB exchange rate. There are two meanings about the appreciation of the renminbi, that is, the internal appreciation of the renminbi and the external appreciation of the renminbi. The so-called domestic appreciation of the renminbi refers to the enhancement of the purchasing power of the renminbi currency.

Measured by economic indicators, it is the decline in the domestic price level, and the decline in prices is reflected in the price index, such as the most commonly used consumer price index, the CPI. From the perspective of ordinary people, it is "money is more spent". The so-called appreciation of the renminbi refers to the decline in the exchange rate of the renminbi against foreign exchange, which is the reduction of the amount of renminbi that can be exchanged for 1 US dollar under the direct pricing method.

Secondly, there is the issue of exchange rates and exchange rate movements. Technically, the exchange rate is the exchange of two countries' currencies**. As we all know, since it is **, it should follow the law of value and fluctuate up and down around value.

Therefore, from the perspective of the essential requirements of the exchange rate, like other **, the exchange rate will fluctuate up and down with the change of supply and demand in the foreign exchange market. It is only because different countries have adopted different institutional arrangements for exchange rate changes——— that the fluctuations of exchange rates have been institutionally manifested in different forms. That is to say, the familiar RMB exchange rate has adopted a fixed exchange rate system for a long time in the past, while most major settlement currencies such as the US dollar, British pound, and Japanese yen have adopted relatively large exchange rate fluctuation space.

The long-term fixed exchange rate has made import and export enterprises, banks and ordinary people unideologically and technically prepared for the change of the RMB exchange rate. When it comes to changes in exchange rates, of course, there should be ups and downs.

3. In short, the direction in which the exchange rate changes will be affected and played by a country's or even international political, economic, and other comprehensive factors. If we only look at economic factors, there are mainly a country's balance of payments, inflation, interest rates, domestic aggregate demand and aggregate supply, people's psychological expectations, foreign exchange reserves, and so on. The concept of balance of payments surplus can be simply understood as the supply of foreign exchange in China is greater than the demand for foreign exchange, and when the supply is greater than the demand, the foreign exchange rate should be reduced, which means the rise of the RMB exchange rate, that is, the appreciation of the RMB as we usually say.

Imported things are cheaper, exports will be less affected, and traveling abroad will be more affordable.