Suppose that the expected annualized interest rate of US dollar deposits in Chinese banks is around 1 year time deposit 1%, and it is higher in foreign banks, such as DBS Bank with local outlets in Nanning, Nanyang Commercial Bank, and one-year US dollar time deposit. According to the median price on July 30th, the rough conversion ratio of 1 USD to RMB is equivalent to RMB interest for one year. If converted into RMB, you can deposit 63,300 yuan in the bank. Calculated by the expected annualized interest rate after 1 year fixed deposit rises 10%, you can earn RMB interest, which is more than RMB directly deposited in the US dollar, and nearly double the expected annualized expected income. Therefore, if citizens do not hold US dollars, although they are now in the channel of RMB depreciation, it is not so cost-effective to replace them with US dollars with appreciation expectations in the bank.

The country has liberalized the foreign exchange of banks, so the exchange rate of banks is different. If citizens really decide to convert foreign currency into RMB, they must compare the timely exchange rates of several banks and try to choose the most favorable exchange time to exchange with banks.

When the RMB depreciates, if you have dollar assets, you can continue to hold them. However, citizens are not advised to convert RMB into US dollars before investing in investment tools denominated in US dollars, because the exchange requires a lot of handling fees, and the difference between foreign exchange and foreign exchange is still relatively large.