What does the RMB appreciate to the US dollar mean
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What does the RMB appreciate to the US dollar mean
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The RMB appreciation is compared to other currencies, which is the increase in the purchasing power of the renminbi. The reason for the appreciation of the renminbi comes from the motivation of the Chinese economic system and the pressure on foreign.
In internal influencing factors include international income and expenditure, foreign exchange reserves, price levels and inflation conditions, economic growth status and interest rate level. The exchange rate of the RMB in 2012 has been in a state of ups and downs. By October 15, 2012, the exchange rate of the RMB against the US dollar once again reached a new high since 1993.
In general, the international revenue and expenditure deficit indicates that foreign exchange supply is in short supply, which will cause the depreciation of the local currency and the appreciation of foreign currency; otherwise, the international revenue and expenditure surplus will cause the local currency to appreciate and the depreciation of foreign currency. Since 1994, international revenue and expenditure has maintained a dual surplus of frequent projects and capital projects. From this factor, the RMB has the pressure of appreciation.
Extension information:
The most obvious changes brought by the appreciation of RMB to domestic consumers are the "more valuable" RMB in your hands. If you study abroad or travel abroad, you will spend less money than before; or, spend the same money, will be able to do more than before. If you buy imported cars or other imported products, you will find that their prices have become "cheap", so that ordinary people can get more benefits.
If the appreciation of the renminbi to a reasonable level, it can greatly reduce the burden on imported energy and raw materials in my country, thereby reducing domestic enterprises and enhancing competitiveness.
Reference materials Source: Baidu Encyclopedia-RMB appreciation
The appreciation of the RMB to the US dollar refers to the higher exchange rate of the RMB to the US dollar.
The systems generally adopted by each country to determine the domestic currency and other currency exchange rates. It is the system regulations made by the principles, methods, methods, and institutions of various countries or the international community on the principles, methods, methods, and institutions of determination, maintenance, adjustment and management. The exchange rate system has a significant impact on the decision of exchange rates in various countries.
The exchange rate system can be divided into a fixed exchange rate system and floating exchange rate system according to the size of the exchange rate change.
The expansion data
The transaction exchange rate risk, in transactions using foreign currency for valuation and payment, the possibility of economic subjects suffered losses due to changes in foreign exchange rates. Trading risks mainly occur in the following occasions:
(1) Risks in import and export transactions in commodity labor services.
(2) The risk of capital input and output.
(3) The risk of foreign exchange positions held by foreign exchange banks.
Reference materials Source: Baidu Encyclopedia-Exchange Rate
In the most popular in the RMB appreciation, the purchasing power of the RMB is increasing (for example, now 6.3654 RMB can be exchanged for $ 1, and after the appreciation, you can only buy 3 yuan or 6.3654 yuan to buy $ 2). For example, in the international market (only in the international market can the renminbi purchasing power enhance), the original one yuan can only be bought for one unit of goods, and more units of goods can be bought after the RMB appreciate. The exchange rate is intuitively reflected.
The foreign exchange reserves in China. After the appreciation of the renminbi, the number of foreign exchange reserves will become less (for example, now it is 4 trillion US dollars, equivalent to 25 trillion yuan. For 100 million yuan, it turned out that the money owed to China was half off). In diplomatic causes, it is even more terrible than becoming a bunch of waste paper (China People's Bank of China released data on July 15, 2014, and Chinese foreign exchange reserves reached 3.99 trillion US dollars at the end of June).
The appreciation of the United States is the largest debt -free country. Its economic crisis began to depreciate when other countries began to depreciate, so that the assets of other countries have evaporated with the money owed by other countries to eat and drink), that is, the US consumer world pays.
RMB exchanged for the US dollar and sold the price according to the current remittance. If the US dollar is exchanged for RMB, if you want to transfer the transfer, buy the price at the current exchange. If you want to withdraw, buy the price according to cash.
: Before the appreciation of the renminbi, the original 100 yen can be changed to 5.1905 (transfer: the current foreign exchange price) RMB.
Is when banks are selling foreign currencies, the price of current foreign exchange is the same as the price of cash. When buying foreign currencies, the price of the current exchange is higher than the price of cash.
The cash buying price is the local currency amount that the bank should pay to the seller when buying a unit of foreign currency cash.
It if the user is purchased, the remittance must be selected to be purchased, otherwise the cash is needed to convert the cash to existing, and the cash will be paid to the exchange fee. Calculating formula for banking transfer fees: bank remittance fee (RMB) = remittance amount (foreign currency) x (now the current exchange price-cash buy price).
This means that, for example, if you have 100 yuan, you can exchange it to $ 6.2 if you go to the bank.
If the appreciation of the RMB against the US dollar, then you are also 100 yuan. If you exchanges the same dollar, the US dollar will be excess to 6.2 US dollars.
The depreciation of the RMB refers to the lower exchange rate of the RMB to the US dollar.
, for example, a product worth 100 yuan, if the US dollar is 8.25 on the RMB exchange rate, the price of this product in the international market is $ 12.12. If the US dollar exchange rate rises to 8.50, that is, the appreciation of the US dollar and the depreciation of the RMB, the price of the commodity in the international market is $ 11.76. The price of goods is reduced and the competitiveness is enhanced, and it must be sold, which stimulates the exit of the product.