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4 thoughts on “michelle mcdowell jewelry wholesale Why does foreign exchange flow cause the RMB appreciation”
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aj jewelry wholesale For example, you can understand that in fact, it is the problem of maintaining exchange rate stability.
. For example, the exchange rate of the US dollar against the RMB was 8.27, and the US $ 100 million in China was quite exchanged for 827 million RMB. Now if there is another $ 100 million in, the central bank of China should have been issued 827 million to maintain the exchange rate of 8.27 That is, 200 million US: 1654RMB, but if only 500 million yuan was issued, it became 200 million US: 8.27 5, and the exchange rate became 6.635. The appreciation -1 dollar can only be exchanged for RMB 6.635. This is a situation that allows RMB exchange rate to fluctuate.
The situation in China is: more and more U.S. dollars are flowing in, either to listen to the appreciation of RMB until it meets the value of the market itself, this method will greatly shrink the existing foreign exchange reserves, and national wealth is plundered by plundering It also slows down my country's export advantage (because it is more expensive than before), because it is more expensive for the US dollar), but it is beneficial to imports; either for the exchange rate of 8.27, the central bank continues to increase RMB to 827 million to maintain the original exchange rate, or or The distribution is less like 810 million, which allows the RMB to appreciate slightly. This is the current approach of China, but there is another question that whether it really needs so many RMB in China, appreciate external fluidity, and there is inflation trend. China is facing the status quo.
la vie jewelry wholesale Appreciation can be actively appreciated and passively appreciated!
1. Passive appreciation (international environment): In the case of a large number of banknotes in the United States, in the case of the unchanged number of Chinese banknotes, it will appear (assumption)
10 US dollars = 1 kg of gold 100 yuan = 1 kg gold also That is, 1 dollar = 10 yuan
Since the total amount of gold is unchanged, it will be like this after printing the US dollar after printing. n is the RMB value, it is the appreciation!
2. Active appreciation (domestic environment): Since China is not allowed to circulate foreign currency in China (this is a law), Chinese businessmen will be exchanged to RMB from abroad. Therefore The foreign currency is saving, so there are so many foreign exchange reserves. Because the foreign currency in our hands is not used, it affects the circulation, so the United States has to print money to offset the money in our hands, so the total number of US dollars in the world has increased The relative quantity of the renminbi is unchanged, so the renminbi appreciates again (back to the first step)!
has no time, I want to explain it here ...
jewelry wholesaler store Yes, very simple truth. In terms of regular channels, foreign exchange flows into China must be exchanged with RMB to enter the Chinese market. To put it bluntly, you want to buy RMB. There are more foreign exchange flows, indicating that there are more people who buy RMB, more people buy, and the price will naturally rise. I do n’t know if such a straightforward explanation can
native american beaded jewelry wholesale Because foreign exchange is usually not free to circulate in the country's market, foreign currencies need to be exchanged for foreign currencies to invest in domestic circulation. This has formed a foreign exchange supply supply in the foreign exchange market. And because a certain economic transaction (such as imports) or capital transactions (investing abroad) causes foreign exchange expenditure, exchanged by domestic currencies into foreign currencies can meet their own economic needs, and the demand for foreign exchange in the foreign exchange market has generated.
The transactions and records in the statistical table of international revenue and expenditure constitute a state of foreign exchange revenue and expenditure of a country. If foreign exchange income is greater than expenditure, the supply of foreign exchange will increase; if foreign exchange expenditures are greater than income, the demand for foreign exchange increases. The increase in foreign exchange supply increases, and when the demand is constant, the price of foreign exchange is directly promoted, and the value of the local currency increases accordingly; when the demand for foreign exchange increases, when the supply is unchanged, the price of foreign exchange is directly promoted to the price of foreign exchange prices. Rising, the value of the local currency declined accordingly.
A international revenue and expenditure surplus -foreign exchange closing is greater than branches -foreign exchange supply is too demand -foreign exchange exchange rate falls
price levels generally decline — procurement power has risen -foreign exchange exchange rate declines;
international revenue and expenditure The deficit -foreign exchange closure is smaller than the branch -foreign exchange supply is in short -term -foreign exchange exchange rate rises
The price levels generally continue to rise -the purchasing power is relatively decreased -foreign exchange exchange rate increases: