Example of export: The year before last, when China exported a suitcase and bag, the local currency was RMB 6.85/USD, the export breakeven price was USD 65,438+000. At that time, it could be converted into RMB 685 (export cost). At present, the exchange rate of local currency is overvalued, and the appreciation of RMB to 6.27 yuan can be converted into 1 USD. The break-even export price of this luggage is about $65,438+009.26, an increase over the previous year.

Accurately speaking, the appreciation of the local currency RMB leads to the increase of the foreign exchange price of China's export commodities, which weakens the price competitiveness of China's export commodities and leads to the decline of the export volume of ordinary commodities.

Example of import: A consumer product imported from China the year before last, when the local currency was 6.85 RMB/USD, the CIF price was 65,438+000 USD, and then it cost 685 RMB (landed import cost). However, at present, the local currency exchange rate is overvalued, and RMB 6.27 is convertible 1 USD. The import price of this kind of consumer goods is only RMB 627, saving the local currency 58 yuan compared with the previous year.

Accurately speaking, the appreciation of the local currency RMB led to the decrease of the local currency price of imported goods in China, which increased the price competitiveness of imported goods and promoted the expansion of imports.