Simply put, the exchange rate is the exchange rate between domestic exchange currency and foreign exchange currency, which is mainly used for trade between import and export enterprises and countries. Many people think that if I don't study abroad and buy expensive luxury goods abroad, the rise and fall of exchange rate seems to have little to do with ordinary people's daily necessities. But in fact, exchange rate fluctuations are related to all aspects of our lives, but we feel different degrees.

First, exchange rate depreciation will increase imported inflation in China.

The CPI we usually refer to refers to the domestic inflation rate, which is actually not high at this stage in China, generally around 2%. It belongs to the normal range. However, although we are a big factory, we can be self-sufficient in daily necessities, but at the same time we also need to import some products, the most important of which are resource products, such as iron ore, oil and natural gas, as well as some food crops, such as emerald soybeans, grains and meat products. If we need to do business with foreign countries, we need to settle in US dollars. If the exchange rate rises and the RMB depreciates, it means that we have to spend more RMB to buy these goods, and the purchase price of these goods will naturally rise. When the prices of these goods imported from abroad rise, the corresponding prices will be deducted when they are shipped to China for sale. This changing price increase is called imported inflation. This is what an importing country has to bear passively. When the price rises, it will eventually be evenly distributed to our consumers. What we will feel is that things have risen in price.

Secondly, it has a great impact on import and export trade, which is related to our foreign trade enterprises and tens of millions of employees.

As we all know, the troika that drives China's economy at this stage is production, investment and consumption. At present, the impact of hesitant epidemic in China has greatly inhibited investment and consumption. Therefore, export enterprises are very important to the economic development of China. Only the booming export volume can better boost China's domestic production capacity, and at the same time, stabilize exchange rate fluctuations through export exchange.

Of course, at this stage, export enterprises are also facing many challenges, such as rising prices of means of production and increasing human costs. At the same time, the fluctuation of exchange rate will increase the exchange cost and risk of enterprises. At the same time, the state's compulsory foreign exchange settlement measures will also inhibit the liquidity and flexibility of corporate funds. Like real estate enterprises, the rise and fall of export enterprises are related to the lives of millions of families. This is the most direct impact.

But also has an impact on people's daily investment, daily necessities purchase, study abroad and so on.

The strength of exchange rate is essentially the performance of a country's comprehensive economic strength. If a country's economy is strong, the exchange rate is relatively stable. If there are some problems in the national economy, the exchange rate will fluctuate greatly. If the domestic currency depreciates seriously, foreign currency will flee the country because of hedging, which will directly affect the local stock market, and the stock market will fall sharply in a short time because of the shortage of funds. The recent continuous decline in the stock market is a factor in this regard. This is really not good news for tens of millions of domestic investors.

In addition, it has a great influence on those who study abroad and buy foreign goods in large quantities. In order to exchange dollars, they have to pay more RMB. At the same time, when the exchange rate fluctuates greatly, most countries will intervene in the exchange rate, and one of the most important ways is to strengthen foreign exchange control. At this time, not only the RMB paid will increase, but also the time limit and convertible amount of foreign currency exchange will decrease. The cost of time and energy has also increased significantly.

Of course, exchange rate depreciation is not entirely a bad thing. For example, for some import and export enterprises, exchange rate depreciation helps to enhance the competitiveness of domestic goods, that is, if goods are cheaper, there will naturally be more foreign buyers, thus increasing production capacity and income.

The exchange rate is actually a double-edged sword. Ups and downs are not good. At the same time, the fluctuation of exchange rate is influenced by many reasons, regardless of our subjective consciousness. What we ordinary people can do now is to manage our own money bags, control consumption and reduce investment, especially financial products related to exchange rate.