Appreciation hedges the cost of jet fuel to promote performance, and the starting point of RMB appreciation may be approaching. The aviation industry is undoubtedly considered as one of the biggest beneficiaries of RMB appreciation. Aviation industry is a typical foreign exchange liability industry, especially liabilities. Airlines have a large number of aviation equipment financing lease liabilities, and they have to pay certain interest expenses and principal every year.

Airlines have a high proportion of foreign currency liabilities, and the appreciation of RMB will cause one-time exchange gains; At the same time, it also reduced the price of imported jet fuel. Because the cost of fuel accounts for about 30% of the total cost of airlines, the appreciation of RMB will reduce the cost of airlines.

The influence of the change of national income on the exchange rate depends on the reasons for the change of national income. If the national income is increased by increasing the supply of goods, the purchasing power of the country's currency will be strengthened and the foreign exchange rate will decline in a long period of time;

If the national income is increased by expanding government expenditure or total demand, the excess demand must be met by expanding imports under the condition of constant supply, which makes the foreign exchange demand increase and the foreign exchange rate rise.

Baidu encyclopedia-RMB appreciation