The appreciation of RMB is relative to other currencies, that is, the purchasing power of RMB is enhanced. The reason of RMB appreciation comes from the internal motivation and external pressure of China's economic system. The internal influencing factors are balance of payments, foreign exchange reserves, price level and inflation, economic growth and interest rate level.
The appreciation of the renminbi is more driven by the depreciation of the dollar than the active appreciation of the renminbi. Due to the problems in China's economic structure and weak agricultural industrial chain, domestic commodity prices and international commodity prices have risen simultaneously. This has also become an important reason why the RMB exchange rate has appreciated, but people feel devalued in their daily lives, making money less and less valuable.
Extended data:
The most obvious change brought by the appreciation of RMB to domestic consumers is that the RMB in hand is "more valuable". The rising prices of imported energy and raw materials will not only raise the prices of the whole basic means of production, but also devour the profits of enterprises in the middle and lower reaches of the industrial chain, making their profitability decline or even lose money.
It is not conducive to the introduction of foreign direct investment in China. China is the country that attracts the most foreign direct investment in the world. At present, foreign-funded enterprises are playing a more and more obvious role in China's industry, agriculture, service industry and other fields, which has a great impact on promoting technological progress, increasing employment and expanding exports, thus promoting the development of the entire national economy.
Baidu Encyclopedia-RMB depreciation internally