Introduction
After entering this year, the international situation became very tense, with a huge impact on the economic market, and in the context of the global integration of the economy, my country was also affected, with a certain devaluation of the renminbi。
For some, the devaluation of the renminbi is a very bad thing, and even a cause for concern, and the media are widely reporting that the sharp devaluation of our currency is due to pressure measures taken by the united states and continued interest rate hikes, which have affected our country. Whether the yuan devaluation is good or bad
The devaluation of the renminbi
Last year, the exchange rate of the renminbi to the united states dollar was one-to-six-two, but by now that figure has become one-to-six-eight, as can be seen from the fact that our currency has depreciated very rapidly。
Some begin to wonder that there is some correlation between this and the interest-rate policy adopted by the united states. This suspicion is not an empty one. The most important reason for the rapid devaluation of our country's currency is the rate-raising policy, which is the constant appreciation of the united states dollar, so that the renminbi will depreciate。
Another contributing factor is the epidemic. It is undeniable that, after the outbreak, the economies of many countries have been disproportionately affected and that, unlike our own countries, which have been forced to live side by side with the virus in situations where the epidemic has not been able to solve, the economic development of our country has naturally been very good, as a result of strong epidemic prevention and control measures and a return to normal social order。
In some parts of the country, there are still outbreaks of epidemic proportions, sometimes with quarantine measures and closures of outbreaks, which can cause enormous damage to the supply chain。
A number of factories are restricted in starting work and are unable to deliver their goods on time, and are prone to difficulties following the break-up of the supply chain. In order to survive, a number of enterprises will be laid off significantly, the number of unemployed will increase, while the number of foreigners ready to invest will start running and the number of foreign firms working with our country will continue to decline。
In such cases, the renminbi would naturally be depreciated. But the devaluation of the renminbi is not simply bad news, and the state is involved in it, and there is a positive implication, why? In fact, there are many benefits to our country from the devaluation of the renminbi
Positive effects of the devaluation of the renminbi
Against the background of the constant devaluation of the renminbi, the impact on our economy will be considerable, but some will be beneficial, most notably to boost production and increase exports。
If we want to sell a product to the united states at a unit price of $2, the value of the product will be rmb 12. 4 before the renminbi is depreciated, and the sale price will reach rmb 13. 7 when the rmb is depreciated, which means that the devaluation of the rmb will make more money abroad for the country's exports, given the constant price of commodities sold by the united states。
For many traders, this has given more impetus to development by seeing better returns. When these producers have the power to produce, they naturally increase their output, recruit a large number of workers, and the problem of unemployment is alleviated, and a large number of factories are built, which will continue to contribute to economic recovery in the country。
The devaluation of the renminbi could also attract foreign investment, and it was the same thing that the united states chose to increase interest rates. The current economic development of the united states was already in jeopardy and, after choosing to increase interest rates, would attract a number of investors to invest, and domestic economic development would be boosted. And what happens after the yuan is depreciated
After that, the cost of foreign investment in the country would be significantly reduced, and what would be the choice between a constant appreciation of the dollar and an increase in interest rates and a huge margin of profit from the devaluation of the renminbi, if the major investment was the currency
If the main investment is in factories, the cost of production will be reduced, and it should be noted that our country has a very large consumer market, produced and sold in china, which can save transport costs, which seems to be all the more beneficial。
From this, it can be seen that the constant devaluation of the renminbi is a direct confrontation with the united states interest rate hike, and that, as an investor, the most important interest is, of course, the best choice to make, provided that the profits are profitable and the profits are substantial. So we need not be too worried about the devaluation of the renminbi, which can contribute to our economic recovery and growth。
Summary
In a complex international economic situation, the devaluation of the renminbi is a good sign, and the country is on track to use it to promote economic development, but the united states does not seem to be that good. After all, they are experiencing high inflation, and the interest-rate hike will make the situation even worse. It is good that the public should take a more positive attitude towards the devaluation of the renminbi。
Today's debate: what is the impact on my congress of the exchange rate of the renminbi, or of the rate of devaluation, of 1:6. 89
