Young Emma gently turned on the TV, and was greeted by a surprise newsRMBrose 1000 and overtook itEuros, becoming the world's second-largest currency, after the US dollar. She couldn't help but feel shocked and excited. She remembers that summer six years agoRMBRightU.S. dollar exchange rateThere has been a sharp correction, and the market is full of fears of depreciation. Who would have thought of it todayRMBWill such a huge breakthrough be achieved?
RMBThe surge has attracted widespread attention, making everyone speculate about the reasons behind it. Actually,RMBExchange rateis the result of a combination of factors.
First of all, the balance of payments situation is the impactExchange rateOne of the main factors. In the first 10 months of this year, China'sBalance of payments surplusReached 1$2 trillion, a record high. This is due to ChinaEconomyThe strong recovery, the rapid growth of exports, the continuous influx of foreign capital, and domestic consumption andInvestmentsThe increase in the proportion of the proportion and other factors are jointly promoted. These factors reinforceRMBof supply and demand, promotedRMBExchange rateTarget**.
Secondly, the level of interest rates is also rightExchange ratehas a significant impact. At the moment, China's interest rate level is advantageous relative to the United States and Europe, which makes itRMBAssets are more havingInvestmentsattractiveness, increasedRMBdemand, thus promotingRMBExchange rateTarget**.
In addition,U.S. dollar indexOf ** tooRMBOne of the factors for the big rise. In recent years, the weakness of the dollar as well as the United StatesEconomySlowing growthInflation rateFactors such as higher fiscal deficits, widening fiscal deficits, and heightened political divisions have weakened confidence in the dollarU.S. dollar index**。This means that other currencies are comparatively more valuable, increasing the demand for other currencies, which also pushesRMBExchange rateTarget**.
RMBThe surge will have a series of impacts at home and abroad. First of all,RMBThe appreciation of the value has decreasedImported goodsto increase the purchasing power and welfare level of the domestic population. They are able to buy more foreign goods and services for less, which has a positive impact on improving their quality of life and well-being.
Secondly,RMBAppreciation will also reduce domesticProduction coststo improve the competitiveness and profitability of domestic enterprises. However, export enterprises may face the pressure of declining export revenues, and need to improve their competitiveness by improving product quality, innovating technology, and opening up markets to balance.
In addition,RMBThe surge will also help boost China's international status and influence. RMBThe appreciation of the international ** andInvestmentsThe settlement capacity has been further expanded by attracting more international partners to participate in the Chinese market and projectsRMBScope and influence of use.
However,RMBThe surge also requires vigilance and precautions. On the one hand,RMBAppreciation may trigger domestic deflationary pressures and decreaseEconomygrowth rate, reducing the enthusiasm of producers to produce andInvestmentsWill. On the other hand,RMBAppreciation may trigger foreign ** friction and increaseEconomyUncertain. Therefore, we need to strengthen domestic structural reforms, improveEconomyendogenous power, enhancedEconomyThe ability to resist risks, promoteEconomyof high-quality development. At the same time, it actively participates in the international communityEconomyCollaborate, promoteRMBInternationalization, expansionRMBThe use of scope and influence for the worldEconomyto contribute to stability and prosperity.
RMBThe big rise makes us proud, and it also makes us shoulder the responsibility, letRMBEven shinier!