RMB exchange rateThe adjustment is affected by a combination of factors. First, let's look at the balance of paymentsRMB exchange rateimpact. Currently, ChinaEconomyStrong recovery and rapid export growthForeign exchange reservesSteady increase, continuous inflow of foreign capital, and China's active promotion of the "dual circulation" strategy, increased the proportion of domestic consumption and investment, and reduced dependence on external demand. These factors are strengthenedRMBof supply and demand, promotedRMB exchange rateTarget**.
Secondly,Interest ratesThe level is one of the important factors that affect the exchange rate. Currently, China'sInterest ratesIt has a clear advantage over the United States and Europe. Chinese termDeposit interest ratesKeep it at 15%, and the federal of the United StatesInterest ratesRevised up to 125%, ECB'sDeposit interest ratesLowered to -075%。This makesRMBAssets are more attractive for investment, increasingRMBdemand, drivenRMB exchange rateTarget**.
Again,U.S. dollar indexRightRMB exchange rateIt also has an important impact. Currently, the United StatesEconomyGrowth is slowing and inflation is risingFiscal deficitsWidening, intensifying political divisions, these factors have weakened the confidence of the dollar, leading toU.S. dollar index**。The weakness of the US dollar has made other currencies relatively more valuable, increasing the demand for other currencies, including:RMB
In summary,RMBThe main reasons for the surge include:Balance of payments surplusInterest ratesLevel advantage andU.S. dollar index** and other factors.
RMBThe impact of the surge at home and abroad is twofold. On the domestic side,RMBAppreciation is conducive to reducing the cost of imports and increasing the value of domestic residentsPurchasing powerand welfare levels. Due toRMBappreciation,Imported goodsKimonoThe relative decline in business has allowed domestic consumers to buy more foreign goods for less moneyKimonoto improve their quality of life and well-being. In addition,RMBAppreciation is also conducive to reducing domestic production costs and improving the competitiveness and profitability of domestic enterprises.
On the international front,RMBThe surge will help to enhance the international status and enhance the international influence. RMBThe appreciation will enhance China's consumption and investment capacity, attracting more international capital into the Chinese market and projects. InThe Belt and Road InitiativeInitiative, Asian Infrastructure Investment Bank, Green DevelopmentChina will cooperate more closely with other countries and enhance mutual trust and cooperation between the two sides.
However,RMBThere are also some downsides to the surge, which require us to be vigilant and guarded against. First of all, on the domestic side,RMBAppreciation may trigger deflationary pressures, decreasingEconomyGrowth. Secondly, on the international front,RMBAppreciation may trigger ** friction and increaseEconomyUncertain.
RMBThe big rise is ChinaEconomyAn important milestone in development, but also for ChinaEconomyA kind of affirmation of strength and reform achievements. We should be good at responding to changes in the external environment, strengthening domestic structural reforms, and improvingEconomyendogenous power, enhancedEconomyThe ability to resist risks, promoteEconomyof high-quality development. At the same time, we should also be actively involved in the international communityEconomyCollaborate, promoteRMBInternationalization, expansionRMBThe use of scope and influence for the worldEconomyto contribute to stability and prosperity. RMBAlthough the sharp rise has brought a series of positive effects, we also need to remain vigilant and take timely measures to deal with possible negative impacts. Only by deepening reform and strengthening internal and external balance can we maintain itRMBstability and sustainable development, forEconomyDevelopment provides good support.