The fourth set of RMB has certain innovations and breakthroughs in design ideas, styles and printing processes. The main scene pattern focuses on the theme idea that under the leadership of the Chinese ****production party, the Chinese people of all ethnic groups are spirited and united to build socialism with Chinese characteristics. In terms of design style, this set of RMB maintains and carries forward the traditional characteristics of Chinese national art. The back view of the main coin is taken from famous Chinese monuments, mountains and rivers, and the back decoration all adopts patterns rich in Chinese national characteristics. In the printing process, the main scene all used a large figure head watermark, carving process is complex; banknote paper were used full plate watermark and fixed portrait watermark, which not only shows the lines of the scene, but also shows the level of light and dark, the process technology is very high, and further improves the level of China's banknote printing process technology and banknote anti-counterfeiting ability.
The fifth set of RMB
On October 1, 1999, the People's Bank of China issued the fifth set of RMB one after another, *** there are 10 cents, 50 cents, 1 yuan, 5 yuan, 10 yuan, 20 yuan, 50 yuan, 100 yuan eight kinds of denomination, of which 10 cents, 50 cents, 1 yuan have banknotes, coins of 2 kinds. The fifth set of RMB increased the 20 yuan denomination and canceled the 2 yuan denomination according to the market circulation needs, making the denomination structure more reasonable.
The fifth set of RMB has inherited the traditional experience of Chinese printing technology and borrowed the advanced technology of foreign banknote design, which has greatly improved the anti-counterfeiting performance and adapted to the modernization of currency processing. The front of each denomination of the currency adopts the head of Chairman Mao Zedong at the beginning of the founding of the country, the backing adopts the famous Chinese flower pattern, and the main scene pattern on the back, through the selection of representative motifs with national characteristics, fully expresses China's long history and magnificent mountains and rivers, and carries forward the great national culture of China.
Ordinary commemorative coins
Ordinary commemorative coins are RMBs with a specific theme and limited circulation. From 1984, when the People's Bank of China issued the first set of general commemorative coins to the present, it has issued 63 sets of 75 general commemorative coins, with a total circulation of about 850 million coins. These commemorative coins are colorful in theme, unique in design, diverse in specification and material, novel and beautiful in design, and come in denominations ranging from 10 cents, 1 yuan, 5 yuan, 10 yuan, 50 yuan and 100 yuan, which condense the glorious achievements of the People's Republic of China and the State of China over the past 50 years as well as the major historical events into the square inches of the commemorative coins. These commemorative coins are an important part of the Renminbi series, enriching and perfecting China's monetary system, promoting China's monetary culture, and constantly exploring and innovating, and playing a positive role in promoting the circulation of commodities and economic development, and expanding foreign exchanges
Other
Legal currency issued by the People's Bank of China. It was issued on December 1, 1948 and is denominated in Yuan (round). To ￥ for the code, take "yuan" word hanyu pinyin yuan of the first capital letters plus two horizontal. After the issue, the local currencies issued in the liberated areas were successively withdrawn, and in April 1951 they were all collected. Subsequently, the various currencies issued by the Kuomintang government were purged by means of acceptance. In order to establish an independent and unified RMB market, the state stipulated that gold, silver and foreign currencies were prohibited from circulating in the market. After controlling the continuous inflation since the War of Resistance Against Japanese Aggression, the state, in order to maintain the long-term stability of the value of the RMB and eliminate the vestiges of inflation, issued a new RMB from March 1, 1953, which was exchanged at the rate of 10,000 yuan for 1 yuan of the new currency, and prices, wages and all debts were also converted at this rate. The denominations of RMB are 100 Yuan, 50 Yuan, 10 Yuan, 5 Yuan, 2 Yuan, 1 Yuan, 50 cents, 20 cents, 10 cents, 5 cents, 2 cents, 1 cent, and 1 Yuan, 50 cents, 20 cents, 10 cents, 5 cents, 2 cents, 1 cent, and 1 cents, which are metal coins. On July 1, 1995, foreign exchange certificates ceased to circulate, as they were equivalent to RMB within a specified range.
On December 2, 1947, Mao Zedong sat on the dirt floor of a farmer's kiln in northern Shaanxi Province and received a telegram from Dong Biwu of the Central Working Committee: "Nan Hanchen has been sent to Bohai to find Zhang and Deng to discuss the specific methods of establishing a bank. The name of the bank is proposed as the People's Bank of China. Please consider whether it is possible to do so. I hope the name will be finalized early, and it will be used when printing banknotes. The Worker's Committee has agreed ...... "Mao Zedong read, handed to Zhou Enlai sitting across the table.
Zhou Enlai read it and said, "Nan Hanchen opinion, the establishment of a unified national bank and currency is imperative." Mao Zedong laughed at this and said, "The situation is really a bit like the Eight-Power Allied Forces entering Beijing. We Jinchaji with the border currency, Jinji Luyu with the Ji'nan currency, Shandong with the Beihai currency, Northeast with the Northeastern currency, Northwest with the farmers' currency, once the fight into Tianjin, Peking to go, is not seven or eight currencies together on the market! However, now on the establishment of a unified national bank, is not too early for some ...... "Zhou Enlai according to Mao Zedong's opinion back telegram.
Dong Biwu received a telegram back from the central government, and immediately brought Nan Hanchen to say: "It's a bit early to set up a national unified bank, but we can't slacken on our preparations. The Work Committee has already studied, from tomorrow, hang out the sign of the Preparatory Office of the People's Bank of China, and you will take the lead as the director of the Preparatory Office."
Nan Hanchen said, "The preparations to be made now include collecting all the unified currency issuance policies, collecting the issuance indices of the liberated areas, and preparing up sufficient issuance reserves. It is also necessary to determine the several kinds of coupons, the amount and value content of each kind of coupon, and also to design the pattern of the coupon plate, select a good paper, and so on....... Since the Central Committee and Chairman Mao agree with us, and the unified bank is called the People's Bank of China, our currency will be called the 'Renminbi' ' now."
Dong Biwu nodded at this and said, "This name is very good, explaining the nature of our bank and our currency. Since it is the people's, it is not of a certain region or department, but must be national, of the whole country!"
Nan Hanchen greatly admired Dong Biwu for this explanation, shrewd and thorough, and said, "When the time comes, the words People's Bank of China on the banknotes, we still have to ask you to write them."
In late December 1947, the sign of the Preparatory Office of the People's Bank of China was hung in a peasant's courtyard in the village of Jieyu, a mile from Xibaipo in Pingshan County.
In the fall of 1948, the preparatory office moved to Shijiazhuang, just as the Kuomintang planes were bombing. Comrades in the preparatory office in the shrapnel whizzing to rescue the rush to print the yuan and other spare materials, Nan Hanchen took the lead in the sea of fire to carry rescue, none of them took into account the personal safety.
Dong Biwu one day to find the South Hanchen, said to him: "your design of the yuan ticket plate samples of the Central Work Committee comrades have seen, a few days ago, I also telegrammed Chairman Mao, told him that the ticket plate printed on the front of the image of Chairman Mao.
Today the chairman came back with a telegram disagreeing with the printing of his image on the ticket plate. The Chairman said, "The tickets are issued by the government, not the Party. I am now the chairman of the party, not the chairman of the government, so my image cannot be printed on the ticket, let's talk about it when I become the chairman of the government in the future. Hanchen, you take the ticket plate back and let them redesign it again."
"Then, what pattern is good to change on the ticket?" Nan Hanchen asked.
Dong Biwu pondered for a while and said, "The RMB, being the people's own currency, should mainly reflect the people of the liberated areas engaged in industrial and agricultural production. In addition, there is another point to pay special attention to: the yuan is the currency of the new China.
We are an independent and autonomous country, and on the front and back of the coupon plate, except for the necessary Arabic numerals, all of them should be in Chinese, and should not be mixed with English characters, as some currencies are."
Nan Hanchen went back and told the designers Wang Yijiu and Shen Naiyong to redesign the banknotes according to Dong Biwu's comments, and to bring the words "People's Bank of China" and the number of money written by Dong Biwu along with them.
The two designers soon came up with three types of banknotes, namely, the ten-dollar, twenty-dollar and fifty-dollar versions, all of which featured workers and peasants engaged in production. The front of the pickup yuan: on the left side is a farmer carting water, on the right side is a mine yard; the front of the two-pickup yuan: on the left side is a farmer leading a donkey to carry goods, on the right side is a train traveling on the railroad tracks; the front of the five-pickup yuan: on the left side is a donkey carting water at the edge of the wells, and on the right side is the coal wagon of the coal mines. To the later issue of one hundred yuan, two hundred yuan, five hundred yuan, one thousand yuan, five thousand yuan, ten thousand yuan face, also follow this structure of industrial and agricultural production.
When the second set of RMB was issued in 1953, the person responsible for the design work was the famous painter Luo Gongliu. At the beginning, they made reference to the Soviet Union's practice of printing Lenin's head on all its currencies, and designed a variety of coupon plates that also featured Chairman Mao's likeness. When Mao Zedong finalized the design, he rejected it. The second time it was sent for review, Zhou Enlai still proposed some changes.
Originally, the main scene of the five-dollar coupon national unity, some people hold up the portrait of chairman mao, zhou enlai instructed that: chairman mao's opinion don't put his image on the painting, here there are still portraits should be changed to a placard. One dollar coupon main picture Tiananmen Square, the original red flag, colorful lamps and Chairman Mao's image, Zhou Enlai also instructed to take down the portrait.
November 1948, the four wild liberation of the Northeast after all the million troops into the Guannei, Tianjin and other places in the implementation of the siege but not fight, isolation but not surrounded by the strategic encirclement, the revolutionary situation is developing very quickly. In the face of this situation, Zhou Enlai called Nan Hanchen and told him to hurry up and mobilize all forces to issue a national unified RMB, or else other measures would have to be taken.
According to Zhou Enlai's instruction, Dong Biwu presided over the second political meeting of the North China People's Government on November 18, and the central topic was: the establishment of the People's Bank of China and the issuance of a unified national currency. At the meeting, Dong Biwu once again discreetly asked Nan Hanchen: "Hanchen, time is running out! How are your preparations going, can you hang out the People's Bank sign tomorrow?"
"I think it can be done. After more than a year of preparations, all the work is ready, the 12 denominations of the ticket plate, have already asked several leaders of the central government to finalize, if the sign of the People's Bank is hung out tomorrow, the banknotes can be issued out tomorrow. In order to prepare for our RMB to occupy the market immediately after the liberation of Beiping, our comrades in the Urban Engineering Department have already sent people with printing plates into Beiping, and negotiated a deal with a printing house there, which has secretly printed a batch of banknotes on our behalf. As soon as the People's Liberation Army enters the city, the yuan will be ready for circulation in the market." Nan Hanchen was full of confidence he said.
Dong Biwu made a decision on the spot, "Good, so we're set, immediately announced the establishment of the People's Bank of China!"
On December 1, 1948, the People's Government of North China posted a bulletin announcing the establishment of the People's Bank of China and the issuance of the national unified currency, the yuan. Comrade Nan Hanchen was appointed general manager of the People's Bank of China.
On this very day, the first batch of five-dollar-denominated yuan was officially issued to the public at the Pingshan County Bank in Hebei Province; followed by the issuance of two-dollar-denominated and ten-dollar-denominated yuan in Shijiazhuang.
Note: The 2-yuan bills now in circulation are being recycled, and the cent has been discontinued.
Renminbi appreciation
A. The benefits of renminbi appreciation:
(1) Renminbi appreciation may mean the improvement of the status of the renminbi, and the enhancement of China's economic status in the world economy.
1) The wealth in the hands of the Chinese people is more valuable, the appreciation of the yuan, the money in the hands of the people is more valuable, China's per capita GDP global ranking can also move forward.
2) the reduction of China's foreign debt pressure and the strengthening of purchasing power and so on.
For example, who pays for the daily operation of the U.S. government, which is called the "global leader"? The obvious answer is the taxpayers of the United States of America. This answer is not entirely correct. Because the current U.S. federal government deficit is huge, just * taxpayers' contribution is not enough to cover expenses, and therefore had to borrow heavily. And who are the biggest debtors? Is Japan and China. A large portion of China's $300+ billion in foreign exchange reserves buys U.S. government bonds.
China has become one of the biggest debtors to the world's most powerful empire. This fact in itself shows China's growing economic power and international influence. Last year China's contribution to global economic growth was second only to that of the United States; its contribution to the growth of global trade was second only to that of the United States and Japan. *It is good that the renminbi, whose economic strength speaks for itself, has naturally gained a greater say in international affairs.
3) Good for the import industry: Shao Jinyang, deputy director of Sinopec, said in an interview, "If the yuan appreciates, overseas assets will be cheaper for us." If the renminbi appreciates by 5 percent, Sinopec's 2003 oil imports, at current prices, will cost more than $100 million less.
(ii) The prospect of an appreciating yuan is still becoming clearer.
This is because, just as the policy of artificially overvaluing the yuan before 1994 was forced to give up, artificially undervaluing the yuan is also unsustainable, because in the exchange rate issue, policy intervention, although it can work for a while, but ultimately it is still the market. As long as China can maintain high economic growth, while promoting the yuan fully convertible process, then, the appreciation of the yuan, to become a regional and even world currency will not be far away. And there is not yet enough evidence to suggest that China's economic growth will come to a sudden halt in the near future; China's monetary authorities have also repeatedly said that the yuan will move toward full convertibility.
In fact, the yuan's upward journey has already begun, starting with the Jan. 1, 1994, sharp devaluation. That year, the yuan's official exchange rate merged with the market rate, adjusting from the previous year's 5.80 yuan to the dollar to 8.70 yuan to the dollar, a 33 percent devaluation. From then to the end of last year, the State Administration of Foreign Exchange statistics is that the yuan relative to the dollar, the euro (before 1999 for the Deutsche Mark) and the yen nominal appreciation of 5.1%, 17.9% and 17%; taking into account the inflation factor, the real appreciation of 18.5%, 39.4% and 62.9%. And the results measured by the International Monetary Fund also reflect the same trend.
In spite of this, at the present time, trying to induce a sharp appreciation of the yuan does not have realistic conditions.
Two: the disadvantages of RMB appreciation:
(1) China's economic growth will slow down due to the impact of RMB appreciation. Performance in three aspects:
1) RMB appreciation will affect China's foreign trade and exports. The appreciation of the yuan will raise the price of Chinese products and increase the cost of capital investment, bringing about a decline in the competitiveness of China's export products, thus triggering a downturn in the domestic economy.
An appreciation of a country's currency brings about a decline in the competitiveness of the country's exports, thus triggering a downturn in the domestic economy. On this issue, Japan is a blood lesson. In 1985, in order to curb the export of cheap Japanese goods frenzy, the United States, France, Germany, Britain's financial leaders have taken the corresponding means to force Japan to sign the "Plaza Accord", thus forcing the yen to appreciate by 30%. Since then, from 1985 to 1996 in 10 years, the yen against the dollar ratio from 250:1 to 87:1, nearly three times. The "Plaza Accord" is recognized as the main culprit that triggered Japan's economic recession. Now Japan is simply trying to transfer this tragedy to China.
2) It will also affect the overall competitiveness of China's enterprises and many industries. Because although "Made in China"
has become a major product in the world market, but one of the Achilles' heel of Chinese products is that they have not yet formed their own brand, and the current market share is mainly dependent on the low price of * Chinese products, and is not in a dominant position in the competition, and it would be terrible if competitiveness were to be hit. The company's competitiveness would be terrible if it were to suffer a blow.
The biggest finding of this survey by China Entrepreneur is that 82.4% of the enterprises believe that the changes in the exchange rate of RMB will have an impact on their business activities. For companies that are operating in China's economic arena, the yuan is like air and water.
For example, Huang Hongsheng, chairman of the board of directors of Skyworth, a major exporter of color TVs in China, is worried about the prospect of appreciation, arguing that most of China's exports are low-technology products, with few high-tech products. If the RMB appreciates, China's international status may improve, but the competitiveness of the manufacturing industry in the world will gradually lose. He made a calculation, if the RMB appreciates by 10%, it is equal to the export price increased by 10%, and China's domestic manufacturing enterprises better profit is only about 5%, plus some financial subsidies, the average profit level of Chinese enterprises is less than 3%. How can an average profit margin of 3% regulate the 10% appreciation pressure? Surely there will be large losses.
Huang Hongsheng to Skyworth as an example, sketched out the highest psychological bottom line of Chinese enterprises on the appreciation of the yuan: "Now we are in the U.S. market is difficult to have a big boost, a big reason is that the other world factories products and our prices are as low as. For example, color TV from Mexico, Europe and Turkey's products are very cheap, we raise a dollar are not possible. We hope to raise 30 million dollars in sales in the U.S. market this year, but if the yuan appreciates, then the plan is aborted."
Another example: compared with manufacturing companies, those at the forefront of exchange rate risk in foreign trade enterprises, is the strongest perception of change. For export-oriented enterprises, the volume of exports, relative to imports, much larger. That's why Huang Hongsheng said the appreciation of the yuan would be devastating.
Huang Fangning, assistant general manager of the Oriental Scientific Instruments Import and Export Group Company, told reporters about an example of losses due to the appreciation of the euro - that is, the depreciation of the yuan.
Early in 2003, they had a transaction, signing of the euro and the U.S. dollar exchange rate is still 1:0.9, and so on the delivery of the time, up to 1 :1.1 now, and they did not take measures to lock in the exchange rate, so they lost money. "Even if we have 10%, 20% of the intermediate profit, all can not offset the loss of appreciation. You can only make up for it yourself."
Then again: some multinational enterprises that originally carried out production in China may shift their investment to Mexico or Malaysia, and in the 1980s, Taiwan also experienced the pressure China is now under, and after the exchange rate of the Taiwan dollar to the U.S. dollar rose from 1:40 to 1:25, a number of traditional low-value-added industries, which have been shifted to Dongguan. Similarly, some experts have analyzed that if the Renminbi appreciates, these traditional industries will again move from Dongguan to more underdeveloped regions like Central Asia and Vietnam. Originally, there are still many areas in China, such as the west, can accommodate these industries, but because the currency adjustment is aimed at all enterprises, may make China forced to go through the process of industrial hollowing out earlier.
3) It could also undermine the long-term development of China's economy, bringing the country's finances closer and closer to the
edge of a crisis. Appreciation of the industry may bury China's years of hard work to create a good investment environment, new overseas investment will be reduced, the driving force of China's economic growth will be greatly reduced, because such investment becomes relatively expensive. On the other hand, the international lobbying speculative activities may increase, so that China's financial from the outbreak of crisis closer and closer to the edge.
For example: from the Mexican financial crisis to the Asian financial crisis, it is obvious that the governments of these countries are to high interest rates of monetary policy to absorb domestic funds, but the effect is counterproductive, due to the lack of internal funds, but also attracted a large number of international capital inflows, so that the flow of funds to deviate from the formation of the structure of the funds on the contradiction, laying the hidden dangers of a currency crisis; and at the same time, it has produced Foreign capital inflow pushed up the contradiction of the local currency exchange rate, triggering the exposure of the economic structure of the problem, or the emergence of a bubble economy or economic slide, thus forced to implement the policy of devaluation of the local currency, which led directly to the currency market and securities market trading risks, and ultimately triggered a financial crisis.
What is a financial crisis? This is like a family was very poor family, came to a rich relative,
for them to bring a temporary "rich" life, and therefore outsiders will be because of its broad and lent to the family a huge amount of money, but the family's rich relatives suddenly disappeared, leaving the family only high debt, and therefore led to borrowing a huge amount of money to the friends. A time of crisis.
It can be seen that if the RMB appreciates, it will lead to: due to the lack of internal funds, and attract a large amount of
influx of international capital, so that the flow of funds to deviate from the formation of contradictions in the structure of the funds, laying the hidden dangers of a currency crisis
4) Also, after the appreciation of the value of the yuan leads to the inevitable prevalence of speculation: due to the wealth of the country expressed in dollars
people As the wealth of the people, expressed in dollars, increases rapidly, the stock market and real estate reaches a climax, some "bubbles" are further inflated or new "bubbles" are created, and polarization continues to widen, leading to the inevitable prevalence of speculation.
For example, many retail investors in the United States have opened local yuan savings accounts in the hope that they will one day benefit from changes in the yuan exchange rate regime. Of course, these retail accounts aren't really yuan accounts, since it's illegal to open yuan accounts overseas under China's non-convertible exchange rate regime. They open RMB-denominated savings accounts with USD deposits, but based on the spot rate of the RMB, these accounts will either appreciate or depreciate due to fluctuations in the spot rate of the RMB against the USD. Frank Trotter, Everbank's chief executive officer, said the company's move has generated a big response from some of its customers. Everbank, which launched the new accounts on July 1 and put more than $6.5 million into them in the weeks that followed, has been asking for yuan-denominated accounts since the currency began to show signs of imbalance more than a year ago.
(5) In addition, there are many downsides to an appreciating yuan:
An appreciating yuan would put more pressure on China's deflation; prices would certainly come down as imports come down in value.
RMB appreciation increases employment pressure and worsens the current employment situation: foreign-invested enterprises are an important channel for attracting domestic labor, especially now, so at this time, RMB appreciation will not only affect the attraction of foreign investment, but also aggravate the deterioration of the current employment situation.
The fiscal deficit will increase due to the appreciation of the yuan exchange rate, while affecting the stability of monetary policy.
The appreciation of the renminbi will cause serious damage to China's advantageous industries. China as a developing country is advantageous in terms of labor cost. China's labor-intensive exports are vulnerable to anti-dumping measures, the export situation is not optimistic. At this time, the appreciation of the RMB will be to make the current situation worse, so the appreciation of the RMB will not only affect the attraction of foreign investment, but also exacerbate the deterioration of the current employment situation.
Three: The world is once again focusing on the yuan in the face of global deflationary pressures.
Changes in exchange rates are closely related to domestic interest rates, money supply, national income levels and price levels, and whether a currency appreciates or depreciates should be decided by the market, not by politics.
However, Shojiro Shiokawa's proposal is more like a political conspiracy. Holding a 100-yuan yuan in his hand, if a child asks: How much is this worth? Then the child must still be too naive to learn how to use money. If it is the Japanese finance minister, Shojiro Shiokawa, who asks, How much is this worth? then that would have caused a furor. And that storm was a proposal at the G-7 finance ministers' meeting -- Japan's demand for an appreciation of the yuan.
Recently, the discussion of whether the yuan should appreciate has become a topic of great international concern. First, Japan's finance minister in the seven countries at the meeting of finance ministers to put forward the request, followed by the U.S. Treasury Secretary Snow's speech and Indonesia's statement of the Asia-Europe Meeting, have called for the appreciation of the yuan, recently, the U.S. "Coalition for a Sound Dollar" and the desire to promote the appreciation of the yuan through the "Section 301", Greenspan's speech, the yuan's appreciation of the dollar. Greenspan's speech, but also let the world in front of the global deflationary pressure to focus on the yuan again. It can be said that the government and the people have united and made concerted efforts to make trouble to the RMB exchange rate issue. This is provoked by Japan, the United States to play a starring role in the RMB exchange rate dispute fully staged, once again make China become the center of the world's attention.
In fact, in the position of the Japanese people to consider, Shiokawa Shojiro raised this issue is not unreasonable. First of all, Japan's economy has been in the doldrums, why you China is a one-trick pony? China's one-upmanship we Japan also contribute, you see, Japan imported from you how many goods. Secondly, the yuan can only appreciate, the yen can depreciate, so that Japan's exports are competitive. China's economy has cheap labor, high technology level and cheap currency 3 major advantages, and the three factors in Japan may interfere, only the last point - the RMB exchange rate. Japan even wanted to use the appreciation of the yuan "short" to prevent their own enterprises to invest in China, but because in a market economy, the government can not intervene in the actions of enterprises, so they asked for the appreciation of the yuan. They believe that this will raise the price of Chinese products and increase the cost of capital investment, so that what they can't achieve domestically, they can achieve by putting pressure on the yuan.
Forcing the yuan to appreciate is Japan's strategic move to fight for the future "Asian dollar" dominance. In recent years, the discussion on the "Asian dollar" issue has become more and more hot, who can become the future dominant Asian dollar has become an increasingly sensitive topic. Japan because of its economy for ten years of sluggishness, the yen as the dominant Asian currency in the possibility of becoming smaller. And China due to high economic growth, has gradually become the Asian economic development "locomotive" and the world economic development "engine", so the value of the yuan is becoming more and more obvious, in China's neighboring countries have begun to form a The value of the yuan has become increasingly obvious, in China's neighboring countries have begun to form a "yuan zone", leading to Japan to worry about this. In 2002, Japan's surplus of 5 billion U.S. dollars with China in the background, Japan's Finance Minister Shojiro Shiokawa put forward a motion to the Group of Seven through the "and the yen in 1985, 'Plaza Accord' similar to the document," forcing the appreciation of the yuan, the global The purpose of pushing the wave of suppression of RMB appreciation to the peak is to try to defeat the challenge of the RMB to the Japanese yen and ensure the future dominance of the Japanese yen through the appreciation of the RMB.
The motives of the US and Europe seem to be even more obvious, that is, to weaken China's economic strength through the appreciation of the yuan, and then hit China's international influence.
The dispute over the yuan exchange rate is still essentially a trade issue. The reason why the U.S. pressure on the appreciation of the yuan, is that the depreciation of the dollar only "greatly enhance the export competitiveness of Chinese enterprises, stimulate the export of Chinese products," especially in 2002, the dollar depreciation at the same time, the U.S. foreign trade deficit hit a record peak of 435.2 billion U.S. dollars, the trade deficit with China reached 103.1 billion U.S. dollars. The U.S. hopes that through the appreciation of the RMB, the U.S. will be able to impede its exports. The U.S. hopes that through the appreciation of the yuan, hindering the large-scale entry of Chinese goods into the United States.
The international pressure for appreciation is growing. Although in the long run, with the development of China's economy, the appreciation of the yuan is an inevitable trend, but in the absence of the formation of China's real export advantage (brand), the nominal exchange rate of the yuan should not be adjusted sharply; even if faced with enormous international pressure, China should be in accordance with the needs of its own economic development, the exchange rate control, or else, as in the case of Japan and Germany, will be their own good economic prospects The Chinese government has also been trying to make the exchange rate more favorable.
Why misprinted yuan is worth more
The error rate during the yuan printing process is very low, and even if there are quality defects, it is hard to escape the quality check before leaving the factory. Therefore, such defective products are extremely rare in circulation. Some coin collectors who like to hunt for this kind of collection like it very much and are willing to pay a high price for it, so it is worth more money.
But in its essence, but the quality of the accident caused by the defective products, in the collection of the significance is not very big, so most professional collectors are not very interested in it. On the contrary, some amateurs in the news media coverage of the push and pull, out of the big price to buy, so that its price rose, very eye-catching. This has also led to some counterfeiters tampering with ordinary coins, pretending to be "error coins" to cheat money. So the layman better not trust these crooks, do not spend money to buy it.
What is RMB appreciation?
Answer: The appreciation of the RMB is the increase in the purchasing power of the RMB in layman's terms. In other words, you used to be able to exchange one U.S. dollar for 8.27 yuan. Now you can only exchange 8.02 yuan.
Often seen on TV, why does the US want to let the yuan appreciate? What is the significance of RMB appreciation to other countries?
Answer: Because the appreciation of the yuan will inhibit our exports. And our main export object is the United States. And into a few years the United States belongs to the trade deficit. Appreciation will slow down this situation.
Relatively speaking, the rise in the value of our currency will stimulate foreign imports into China.
What is the concept of yuan assets stocks. What stocks are in this category
Real estate stocks and bank stocks are typical RMB asset concept stocks. RMB asset concept stocks, simply put, financial stocks, financial includes many, here mainly refers to banks and real estate stocks
The impact of RMB appreciation on China's economy
China should adjust its industrial structure by raising the cost of the environment, and abandon its short-sighted development strategy,
Over the past 20 years, China's traditional mercantilist development model has had mixed benefits and drawbacks, and in the process of this import-export trade exchange, China's economy has seen an increase in the value of the RMB, which has led to an economic decline. In this process of import and export trade exchange, China's economic capital has increased a lot, but the natural capital has lost a lot. At present, the country has formed several large ecological danger zone, the South-North Water Diversion is a case in point, the scarcity of water resources in North China has become a foregone conclusion, China had to spend hundreds of billions of dollars of water conservancy projects to adjust the allocation of resources. The black soil in the three northeastern provinces is a layer of surface black soil formed after hundreds of millions of years of vegetation decay, and there is only one piece of black soil in the world in Ukraine and one in the central part of the United States. However, after destructive development in recent decades, China's black soil erosion is serious. If we do not increase the cost of ecological protection in this region, and focus on the pursuit of cheap food production and export, this black soil will be exposed in a few decades. China's wool and cashmere production of desertification of the northwest region also has an unshirkable responsibility, the ecological deterioration of the northwest region is becoming more and more serious.
As for the cost of combating environmental pollution is even greater, the annual investment of one or two hundred billion yuan of governance, to a large extent, offset the results of economic development. Overall, China's trade costs are huge when environmental costs are factored into the costing. In terms of comparative advantage, many of China's exports are produced at a comparative disadvantage. In order to export more cheaply, there is no hesitation in destroying and polluting the ecological environment.
Improving China's environmental costs has become imminent, the state has to formulate a series of legal protection measures, for example, for certain products do not implement export tax rebates, through tax policy to reduce the export competitiveness of these products, increase the environmental costs of this category of products. At present, China should seriously check the real cost of some export industries, such as silk, leather, agricultural products, etc., to find back the missed environmental costs. Rationalize the use of international resources through tariff regulation. Through the comparative advantage to eliminate those uncompetitive products in China, eliminating those who lose money to make money export products, and finally achieve the purpose of adjusting the industrial structure, so that, from the surface and time, may affect the interests of some regions and sectors, but in line with the long-term survival and development of the Chinese nation.
In general, China has not yet escaped from the export characteristics of developing countries, that is, relying on resources in exchange for technology and service products. The characteristics of this trade for developing countries is a kind of move mountains and add sea type of export, at present China's marble, cement, pig iron and other exports have been ranked among the world's top. Another characteristic of this kind of trade is that there is price inequality between primary products and industrial products, and primary product countries have to exchange more labor and resources to get back the required products. If developing countries did not reverse that trade structure in a timely manner, the end result would be a depletion of resources and a lack of trade continuity. At present, such resource-based exports have put some African countries in an unsustainable situation. China's exports of industrial products in recent years, the proportion of rising, processing trade has been a larger proportion, but also pay attention to the cost of the environment and resources.
II. Comparison of Ancient and Modern Mercantilism---