On 10 april, the exchange rate of the renminbi to the united states dollar crossed the seven-dollar threshold and entered the six-dollar era, causing international and domestic financial turmoil. An industry analysis indicates that the appreciation of the renminbi is the result of our balance-of-payments imbalance and the recent continued depreciation of the united states dollar, which, in the long run, is conducive to curbing inflation, but may accelerate the influx of hot money and push it up. The public is concerned about the impact of the appreciation of the renminbi on our lives
Tiger, an employee of a real estate company in ginchuon city, who was about to leave the country on his honeymoon, said: “although knowing that appreciation of the renminbi is not necessarily a good thing, there is always a feeling that the renminbi can appreciate and travel abroad with a sense of confidence.”
“the impact of the appreciation of the renminbi on ordinary people is first and foremost psychological.” the relevant officials of the ningxia branch of the industrial development bank stated that the appreciation of the renminbi could enhance the cohesion of the people and enhance their confidence in the currency. It was explained that, at present, our foreign exchange reserves are the largest in the world, and it is self-evident that when the renminbi becomes a powerful currency, more people will have greater confidence in the renminbi and hold it, which brings currency confidence to everyone。
The appreciation of the renminbi means that the equivalent can buy more money abroad, and that what was bought at $10 a year ago requires 70 yuan, which is now only 60 yuan. In other words, when residents of our region travel abroad to study and study abroad, any consumer behaviour will benefit from the appreciation of the renminbi. An external manager of a travel agency in ginchuan said that, for the people of ningxia, the most affected by the appreciation of the renminbi would be out-of-country tourism, with europe most visible. Since exchange rate items are involved in contracts between domestic travel agencies and offshore tourism agencies, if the exchange rates are floating, the renminbi's appreciation has the most direct effect on line prices, and travel agencies will benefit from price advantages arising from exchange rate changes。
In the same vein, learning abroad can taste similar sweets. In addition, those who own investment property benefit from it. In recent years, housing prices have increased significantly as a result of the appreciation of the renminbi and the arbitrage of large amounts of hot money to the renminbi assets。
Many of the citizens of silverkawa have expressed such an attitude: although the renminbi continues to appreciate, money is increasingly spent. Ms. Hu of the xinqing district of ginchua complained: “the past two dollars have been used to buy a meal, and now two dollars have been used to buy a few onions, but i don't think the yuan is worth it.”
Industry analyses suggest that the purchasing power of the renminbi is largely affected by domestic inflation, which reduces the purchasing power of the currency if it increases. It was explained that the significance of the appreciation of the exchange rate of the renminbi is reflected mainly in international transactions, such as the fact that enterprises that import large quantities of raw materials and technology are valued in united states dollars, and that when prices do not change, the renminbi is appreciated and the cost of imports is reduced when converted into the renminbi. From this point of view, exporting enterprises in our region will be “fragile” in future export and import activities。
