Advantages and disadvantages of virtual currency

The positive effects of RMB appreciation are as follows:

1, favorable for China's import

2, lower cost of raw material import dependent manufacturers

3, enhanced foreign investment capacity of domestic enterprises

4, increased profits of foreign-invested enterprises in China

5, favorable for talents to study and train abroad

6, reced debt service pressure

7 China's asset sale is more cost-effective, China's GDP international status is improved, national tax revenue is increased, Chinese people's international purchasing power is enhanced, and the negative impact of RMB appreciation is as follows:

1. RMB cannot be freely convertible under the capital account, that is to say, the mechanism determining the exchange rate is not the market, and change is meaningless

2 RMB appreciation will bring more pressure to China's deflation

3. RMB exchange rate appreciation will lead to the decline of foreign investment attraction and rece foreign direct investment in China

4. It will cause great harm to China's foreign trade exports

6 The fiscal deficit will increase e to the appreciation of RMB exchange rate, and affect the stability of monetary policy at the same time.

the impact of RMB devaluation:

as far as RMB devaluation itself is concerned, it will cause the value of domestic assets to shrink and may have adverse effects on real estate. It is concive to economic transformation. The devaluation of RMB will increase exports and competitiveness, and help to ease the deflation expectation caused by insufficient domestic demand

in addition, the devaluation of RMB has greatly reced the Arbitrage Behavior of international speculative capital, i.e. hot money, and made it sell RMB and related assets and then sell them to US dollars and other assets, which has reced the domestic investment, reced the investment projects that needed a lot of money before, reced the places where money was used, reced the loans, increased the liquidity in the market, and reced the interest rate, The financing cost of the real economy will be reced. Reced investment can improve overcapacity, rece the increasing debt burden, and rece capital demand, which will help increase domestic liquidity

what is RMB appreciation? In the most popular words, the appreciation of RMB means that the purchasing power of RMB is enhanced, and the price is easy to inflate with its rise

that is to say, before the appreciation of RMB, you can exchange one dollar for 8 yuan, but now you can only exchange 6.12 yuan. That is to say, you used to need 8 yuan to buy one dollar things, but now you need 6.12 yuan to buy one dollar things. The money in people's pocket will be more valuable, and it will be cheaper to travel abroad and buy imported luxury goods

because RMB appreciation will inhibit China's exports. China's main export target is the United States. In recent years, the United States is in trade deficit. Appreciation will slow that down. Relatively speaking, the rise of China's currency value will stimulate foreign imports to China

after the appreciation of RMB, from the macro-economic point of view, the cost of direct investment in China will increase, foreign investors will rece investment in China, foreign tourists will rece tourism and consumption in China, at the same time, a large number of imported goods will flow into the domestic market, which will lead to the re adjustment of some domestic enterprises, and many people may lose their jobs

what is RMB devaluation? RMB devaluation refers to the exchange rate of one country's currency to another country's currency. Many people confuse it with what we usually call "value" of money. Both are indicators to measure the purchasing power of a country's currency, but the former is for the purchasing power of international trade, while the latter is actually for the purchasing power of domestic goods