Many investors are now switching from the stock market to the foreign exchange market. This is because the status of the RMB in the international currency is gradually improving. Many people see “business opportunities” in foreign exchange speculation, so it is inevitable to enter the foreign exchange market. But foreign exchange speculation not only requires investors to master foreign exchange speculation skills, but also requires attention to national (international) events related to foreign exchange, so that they can be more comprehensive when analyzing foreign exchange market conditions. So what is the impact of RMB joining the SDR?
One: For foreign exchange investors, the addition of RMB to the SDR is an excellent investment opportunity. Because the fluctuations in the exchange rate market are expanding, the profit margin is also rising, and because the further depreciation of the renminbi is “inevitable”, the exchange of US dollars to renminbi will still be a hot spot for investment in the future.
Two: Because the development of SDR is not very good at this stage, the addition of RMB has improved its marginality, which has an important impact on strengthening the legitimacy, stability and representativeness of SDR;
Three: The addition of the RMB to the SDR is conducive to improving the status of the RMB as an international reserve currency, promoting the internationalization of the RMB, promoting the flow of cross-border funds, and opening up channels for investing in overseas markets;
Four: Promote the volume of foreign exchange transactions. After the renminbi is added to the SDR, the market is more certain about its further depreciation expectations, and the People’s Bank of China will also carry out a controllable devaluation of the renminbi;
All foreign exchange speculators know that the foreign exchange market is an international market, relatively speaking, it is fair and just, and it is a two-way transaction, so there are more opportunities for investment profits, so it is more popular with investors.
