Currently, 1 US dollar = 7.7310 RMB. If exchanged domestically, there will be a price difference between buying and selling foreign exchange.

The RMB must rise.

First of all, it must be clear that the current price of the RMB is simply not in line with reality. The simplest way is to look at the price of McDonald's Big Mac around the world. This method is more practical. At least there are examples of this in many international financial management textbooks (English). This method was first proposed on page 66 of "The Economist" on April 27, 2002, "Economics Focus Big MacCurrencies" ” on this article.

According to data at the time, a Big Mac burger cost 10 yuan and 50 cents in China, while it cost 2 US dollars and 49 cents in the United States. Based on the basic idea that currency exchange reflects purchasing power. For the same burger, the price paid in the United States and China should be the same, so 10 yuan and 5 cents = 2 US dollars and 49 cents, and 1 US dollar = about 4.22 yuan.

The reality is obviously far from this ideal data (it was 8.28 at the time). The main reason is the strong interference of the Chinese government to make profits from foreign trade. Now that you have entered the WTO, you will no longer be allowed to use this trick, but we cannot listen to what others say. Therefore, the current policy of the Chinese government is to gradually relax monetary policy. Loosening monetary policy means that the current actual exchange rate will gradually move toward the ideal exchange rate. . . Currently it is more than 7 yuan, and the ideal is more than 4 yuan, which means that the number of RMB exchanged for 1 US dollar will become less and less.