The advantages of keeping the value of RMB basically stable are: it is conducive to the improvement of national GDP, the basic balance of people's income and consumption level, and the price increase will not rise rapidly, which is conducive to the domestic gold reserves determining the strength of the domestic currency, and improving the right to speak internationally and the international liquidity of the domestic currency.
After currency appreciation, the prices of export commodities increase, while the prices of import commodities decrease accordingly, resulting in a decrease in exports and an increase in imports, which adversely affects the balance of payments. It will also affect the comprehensive competitiveness of China enterprises and many industries;
Currency appreciation worsens a country's foreign trade environment, leading to a decline in domestic production, an increase in unemployment and intensification of domestic contradictions; Intensify deflation. The price of imported goods will fall because of the appreciation of the local currency, and the price of similar domestic products will also fall under the "demonstration effect". Exports will decrease due to the appreciation of RMB, the demand for products of export enterprises will shrink, and prices will decrease, which will eventually drive the overall decline of domestic prices. );
The appreciation of domestic currency makes the country's foreign exchange reserves or funds returned from foreign exchange in China converted into domestic currency, which is also correspondingly reduced, which is not conducive to the introduction of foreign capital.
(2) Keeping the RMB exchange rate basically stable is not only conducive to the sustained and stable development of China's economy and finance, but also to the stable development of neighboring countries and regions, and fundamentally, to the stable development of the world economy and finance.