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3 thoughts on “the jewelry house wholesale "Renminbi appreciation, depreciation of internal depreciation"”
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wholesale real gold jewelry suppliers External appreciation:
, a currency, if the demand is large and the supply is insufficient, it will naturally appreciate. In addition to the world currency such as the US dollar, the large amount of currency demand is usually when a country is exported.
The large amount of capital to be converted into the country's currency to buy goods. Therefore, with the rapid growth of China's economy, more and more export products, increasingly high -end, RMB appreciation is a very natural thing.
However, large -scale exports make foreign exchange influx. Foreign exchange is obviously unable to be circulated currency in China, so it must be converted to RMB. These converted RMB were printed by the government. This increases the supply of currency in China, and naturally increases the inflation rate.
On the other hand, in order to maintain the competitive advantage of Chinese products in the international market and ensure the stable domestic development, the Chinese government has always deliberately lowered the RMB exchange rate.
It because the international market is generally believed to have a lot of room for appreciation, capital has entered China and used RMB appreciation to obtain profits. This situation is more serious.
Dorb depreciation:
Puly, especially after the Bretton Forest system is poured, basically keeps inflation. The appropriate amount of inflation is good for economic development. Not to mention, at least stimulate consumption and investment. In other words, today's currency is a general state of depreciation.
The domestic market has invested a large amount of currency, but the goods represented by these currencies have not been circulated in the market and are used to export. In contrast, China is holding a lot of US dollars in their hands, hoping to buy some high -tech of the United States, but Americans do not want to sell them to China except aircraft soybeans. US Treasury bonds.
On the one hand, there are a lot of RMB in China. On the other hand, there is no derived goods to supplement, which is equivalent to saying that the RMB supply is greater than the demand, so it is inflation to internal inflation. That is, the depreciation of the RMB.
Pucting information:
The RMB appreciation is relative 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. Internal influencing factors include international revenue and expenditure, foreign exchange reserves, price and inflation status, economic growth status and interest rate level.
The exchange rates of RMB for people's currency in the ups and downs in the ups and downs in the ups and downs. By October 15, 2012, the RMB against the US dollar at the expected exchange rate once again reached a new high since 1993.
In internal factors
: Actual valid exchange rate
In IMF estimates, in 2002, the RMB compared with other major trading partners, the valid exchange rate decreased by 6%, and according to Hu Zuliu (2003) The calculation of the US dollar from the highest point of its exchange rate in February 2002 to June 2003, the actual effective exchange rate of the RMB has fallen by 11%.
Since the major reform of China's exchange rate system in 1994, according to the results of international organizations, the RMB has been underestimated.
: Purchasing power parity
"Purchasing power parity" theory is an important exchange rate determination theory. The theory believes that the purchasing power parity (PPP) refers to the exchange rate of the two currencies in a certain period of time.
Ip, that is, the exchange of domestic currencies and foreign currencies is essentially the exchange of purchasing power of domestic currencies and foreign currencies. The long -term equilibrium exchange rate is determined by the purchasing power of domestic currencies and foreign currencies.
The "Human Development Report" released by the United Nations Development Planning Department (UNDP) shows that the per capita GDP of China was calculated at $ 1352 in the nominal exchange rate in 2005, but if it is converted to $ 5,791 according to the purchasing power parity method, that is, the name exchange rate ratio is based on The RMB exchange rate calculated by purchasing power is 4.06 times.
: International revenue and expenditure
"International Revenue Decision Theory" believes that the international revenue and expenditure status of a country is one of the most direct factors affecting the exchange rate. When a country has a large international revenue and expenditure deficit, the demand for foreign exchange is greater than the supply of foreign exchange, and the local currency depreciates to the outside world; otherwise it will cause the local currency to appreciate.
Reference materials Source: Baidu Encyclopedia-RMB appreciation
stainless steel jewelry wholesale philippines Let's talk about depreciation in the inside. Modern currencies, especially after the Bretton Forest system falls, basically keeps inflation. The appropriate amount of inflation is good for economic development. Not to mention, at least stimulate consumption and investment. In other words, today's currency is a general state of depreciation.
Pets specifically, it is equivalent to saying that China's domestic market has invested a large amount of currency. However, the goods represented by these currencies are not circulated in the market and are used to export. In contrast, China is holding a lot of US dollars in their hands, hoping to buy some high -tech of the United States, but Americans do not want to sell them to China except aircraft soybeans. US Treasury bonds. On the one hand, there are a lot of RMB in China. On the other hand, there is no derived goods to supplement, which is equivalent to saying that the RMB supply is greater than demand, so it is inflation to internal inflation. That is, the depreciation of the RMB.
mades to the external appreciation.
First of all, a currency, if the demand is large and the supply is insufficient, it will naturally appreciate. In addition to the world currency such as the US dollar, when is the large demand for the general currency, it is generally a time when a country exports is strong. A large amount of capital is converted into the country's currency to buy goods. Therefore, with the rapid growth of China's economy, more and more export products, increasingly high -end, RMB appreciation is a very natural thing.
However, large -scale exports make foreign exchange influx. Foreign exchange is obviously unable to be circulated currency in China, so it must be converted to RMB. These converted RMB were printed by the government. This increases the supply of currency in China, and naturally increases the inflation rate.
On the other hand, in order to maintain the competitive advantage of Chinese products in the international market and ensure the stable domestic development, the Chinese government has always deliberately lowered the RMB exchange rate. Because the international market is generally believed to have a lot of room for appreciation, capital has entered China and used the appreciation of the renminbi to obtain profits. This naturally worsen the situation.
wholesale jewelry sales supplies For example, ten years ago, an American brought $ 1 million to China to exchange to 8 million yuan. At that time, the exchange rate for the US dollar to exchange RMB was 1: 8! He spent two million for ten years in China, and then returned to the United States to return the remaining 6 million to the bank to $ 1 million when he returned to the United States! All the costs in China are borne by the Chinese people! Every 1%of the RMB, China's $ 20,000 foreign exchange reserves have a relative depreciation of 1%, losing $ 200
The international hot money (existence in RMB), even if no investment is made, it will increase by 1%. When the appreciation reaches a certain point, the hot money fled (one of the important reasons for the forced RMB to appreciate), causing a large amount of RMB to return and aggravate inflation.
did not rise 1%of China's export manufacturing profit loss of 20%-33%, and the appreciation of more than 5%. All export manufacturing industries will be unprofitable. The more production, the greater the loss. This has led to the failure of a large number of entity manufacturing, which in turn has triggered two results: 1. The major recession of the Chinese ethnic industry, deformity of economic structure, and unable to resist the aggression of foreign economies. 2. A large amount of free funds transferred from the entity, further enter the virtual financial market and circulation market, and increase inflation.
each liter of 1%, the expectation of the Chinese people's expectations to be exchanged to the US dollar increases by 1%. When it rises to a certain point, major banks are likely to encounter the RMB crowding trend. Judging from the bad accounts of our banks It is difficult to resist this incident, so when the bank's reserve cannot be supported, banks representing the national credit cannot be closed downwards, and they can only seek national support. What should I do? Only further increase the amount of currency issuance to accelerate inflation.