1. For people who like to travel abroad and study abroad, the same money can buy more things, and the cost of traveling and studying abroad is reduced.
2. For some China enterprises that issue foreign debts in US dollars, the pressure on foreign debts has been reduced.
Second, the disadvantages of RMB appreciation:
1, the appreciation of RMB will have a certain impact on China's export-oriented enterprises, even a devastating blow.
2. Seeing the trend of RMB appreciation, a lot of hot money at home and abroad may go to domestic real estate speculation. The influx of a large amount of funds will not only make the real estate bubble blow bigger and bigger, but also affect the stability of the financial market.
Third, the advantages of RMB depreciation:
1. After the devaluation of RMB, the US dollars received from export goods can be exchanged for more RMB from banks, and the profits will increase, thus stimulating China's exports.
2. The cost of foreigners coming to China has been reduced, which has promoted the development of tourism at home and abroad.
4. Disadvantages of RMB depreciation:
1, domestic prices rose, leading to inflation.
2, a large number of capital outflows, financial markets will be unstable.
Extended data:
RMB exchange rate change (%) = US interest rate (%)-China interest rate (%)
1, look at the price first.
The inflation rate in the United States is generally estimated to be between 2% and 4%; Assuming that the inflation rate in China is still 1%, the appreciation of RMB may still be only 3%. In other words, the appreciation of RMB will be relatively slow, and the range is not large. If prices in the United States are as stable as in the first few years of the 20th century, the appreciation of RMB will stop. It is worth noting that if the price increase in China intensifies, the appreciation of RMB may also stop.
2. Look at the interest rate.
American interest rates have stabilized. The latest federal funds rate is 5.5%, and many economists expect to cut it. Assuming that the RMB interest rate remains around 2%, the RMB appreciation should also be around 3%.
Here, Professor McKinnon gave China monetary authorities a warning: Don't let the RMB exchange rate rise too fast. Because in that case, the real interest rate in China will be very low.
On the other hand, when the People's Bank of China raised interest rates on August 19, 2065438, there were comments at that time that there was little room for further interest rate hikes. Because in that case, the pressure of RMB appreciation will further increase.
Baidu encyclopedia-RMB exchange rate
Baidu encyclopedia-RMB appreciation
Baidu Encyclopedia-RMB depreciation