The foreign currency represents the external value of the Renminbi.
The State Administration shall, on the basis of the principle of independence and unity, make unified formulations and adjustments in accordance with the comparison of prices at home and abroad and the fluctuation of exchange rates in the international financial market, and publish them at home and abroad on a daily basis.
It is the official exchange rate. If there is no market exchange rate, the pricing method is international, that is, the fixed unit of foreign currency quantity (such as 1, 100, 10000, 100000, etc.) is converted into a certain amount of RMB, which is used to express the exchange rate of RMB against foreign currencies.
For example, if 1=7.044 RMB, the RMB exchange rate will fall with it.
In other words, a rise in the yuan’s exchange rate means a fall in its value.
2. China’s exchange rate regime refers to the systematic provisions made by the Chinese society on the principles, methods, methods and systems for determining, maintaining, adjusting and managing exchange rates.
China adopts a regulated and managed floating exchange rate system based on market supply and demand with reference.
(1) The appreciation of RMB 1. Beneficial impact on the strengthening of the purchasing power of RMB, its attraction to foreign capital and its inflow;
Reducing debt service pressure;
Reducing inflationary pressures;
Conducive to travel and study abroad.
2. Adverse effects increase the price of export commodities and inhibit export;
Export enterprises are losing money or closing down, leading to increased unemployment;
The scale of external debt has expanded;
Affecting the stability of financial markets.
(2)1. Beneficial influence on the depreciation of RMB, increase the purchasing power of foreign currencies, reduce the price of Chinese products, increase exports, reduce imports, increase.
Cost reduction for export enterprises.
The depreciation of domestic currency will cause foreign trade frictions, which is extremely adverse to the stability of the national economy.
Exporters survive, but not for long.
Risk appetite improved, the dollar fell, gold retreated and oil prices jumped 4 percent.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
