1, RMB appreciation will directly affect China's exports. A direct consequence of RMB appreciation is to increase the cost of China's export products and weaken the competitiveness of China's export products.

2. Another result of RMB appreciation is weakening foreign investment in China. This is directly related to the first influence. The reason why a large number of foreign investors invest in China is based on the current fixed exchange rate between RMB and USD. If the RMB appreciates, many foreign investors will change their investment plans in China.

3. The current appreciation of RMB is not conducive to the political and economic stability of China. On the surface, the appreciation of RMB increases the purchasing power of RMB, which is also conducive to improving China's international image. But in fact, it is easier to fall into the illusory trap that the economic prosperity brought about by the appreciation of the renminbi is out of touch with reality.

Impact of devaluation:

1. Imports will be reduced, and the profits of import-oriented enterprises will be reduced: because when importing goods, RMB must be converted into foreign currencies such as US dollars in the bank to buy goods from abroad. After the devaluation of RMB, the same RMB gets less dollars and buys fewer goods, which leads to the increase of import cost and the decrease of competitiveness of imported goods.

2. With the increase of exports, the profits of export-oriented enterprises increase: after the devaluation of RMB, the dollars received from export goods can be exchanged for more RMB from banks, and the profits increase.

Extended data:

There are ups and downs:

Overall relative stability The exchange rate remains relatively stable. Apart from the choice of unilateral appreciation and depreciation of the RMB exchange rate, this is also a choice of exchange rate changes, which is probably the most desirable idea of RMB exchange rate reform under the current turbulent international economic situation.

The Central Economic Work Conference held on February 8, 2008 also proposed to "maintain the basic stability of the RMB exchange rate at a reasonable and balanced level and further improve the balance of payments". In fact, this view is essentially the same as the one that has been emphasized since the exchange reform. However, no matter which side they stand on or hold high the banner of maintaining stability, all parties have their own reasons and logic.

How will the RMB exchange rate trend be interpreted in 2009? The next step focuses on combining some economic theories, domestic monetary policy and the current domestic and international economic situation for analysis.

Baidu encyclopedia-RMB exchange rate