Impact on the domestic price level: the depreciation of the local currency leads to the price increase of imported goods on the one hand, and the price increase of exported goods on the other. Impact on national income, employment and resource allocation: the depreciation of local currency is conducive to export restricting imports, and the restricted production resources turn to export industries and import substitution industries, which promotes the increase of national income and employment, thus changing the domestic production structure. ?

Extended data:

"A variety of factors have pushed up the RMB exchange rate and performed strongly against major currencies." Yi Xianrong, a researcher at the Institute of Finance of China Academy of Social Sciences and a special commentator of the Herald, told the Economic Herald that the main reason for this round of strong appreciation is "external factors", and the excessively loose monetary policy in the United States, Europe and Japan is the fundamental reason. The RMB exchange rate surrounded by ultra-loose monetary policies in various countries is hard to bear the impact, and unilateral appreciation is inevitable.

According to the data released by the China Foreign Exchange Trading Center authorized by the People's Bank of China, on the 9th, the central parity of the US dollar and other currencies against RMB was 1 RMB 6. 1925, euro 1 RMB 8. 1496, and yen 100 against RMB 6.2507.

On the 8th, the central parity of RMB against the US dollar broke through the 6.20 mark. On the same day, the central parity of RMB against the US dollar rose for the third consecutive trading day, to 6. 198, up 103 basis points from the previous trading day. The market generally believes that 6.2 is an important barrier for the exchange rate of RMB against the US dollar.

In fact, since April, the central parity of the RMB against the US dollar has hit a new high since the exchange rate reform in 2005 for 10 consecutive trading days, and the appreciation rate is close to 700 basis points. Compared with the first trading day at the beginning of the year, the central parity of RMB against the US dollar has appreciated by 9 17 basis points this year, while it only appreciated by 146 points last year.

"With the follow-up of quantitative easing policies by countries such as the United States and Europe in the second half of last year, global liquidity is abundant and capital flows back to emerging market countries including China." Yi Xianrong said that last week, following the interest rate cuts announced by the European and Indian central banks, the Australian central bank also announced a 25 basis point interest rate cut on the 7th, and then the expectation of further interest rate cuts by the European Central Bank was also rising, which was likely to trigger a chain reaction of interest rate cuts by South Korea and other countries, which in turn triggered the Japanese quantitative easing monetary policy. Judging from the current situation, the global ultra-loose monetary policy will continue, and a new round of "exchange rate war" in the international market will continue to kill.

References:

China Economic Net-The exchange rate of RMB against the US dollar has reached a new high, and there is still room for appreciation in the near future.