1. Why is the value of RMB getting lower and lower in China?
Over the years, China's money supply has surpassed that of China or other countries in the world, because domestic economic growth relies more on the substantial increase of investment and credit.
The price increase of commercial housing in major cities in China is the most prominent and fierce.
The impact of RMB appreciation on the domestic economy is also multifaceted. For example, help domestic enterprises reduce import costs, benefit from importing raw materials and energy, high-tech products and various consumer goods that China needs, and repay foreign debts. This will also help China people to travel abroad, study abroad and invest. However, this will increase the export cost of domestic enterprises, especially those enterprises that rely entirely on low-cost products and cheap labor and have meager profits.
Second, is the popular saying that foreign exchange reserves and US debt are seriously lost reliable?
With the appreciation of the renminbi, that is, the dollar is constantly depreciating against the renminbi, if Aunt Li saved a dollar eight years ago and wants to change it into renminbi today, this figure will definitely be greatly discounted. Therefore, there is a popular saying in China that the depreciation of the US dollar has caused serious losses to the US dollars held by the people, especially the huge national foreign exchange reserves and the US bonds purchased by the government. So far, more than 300 billion US dollars of foreign exchange reserves and US bonds have lost more than one third, exceeding 1 trillion US dollars. In this way, the remaining dollars will also become waste paper, which is the result of international collusion on foreign exchange reserves.
The mistake of this statement lies in confusing the internal depreciation and external appreciation of the currency. What needs to be clear is that internal depreciation reflects the decline of domestic purchasing power.
This is the self-comparison of money; As the concept of exchange rate, the appreciation of RMB and the depreciation of USD against RMB are comparisons between different currencies.
In modern society, apart from collectors, people's basic purpose of pursuing money is to buy things, including facilitating the exchange of other currencies. That is, the need of RMB is to buy goods from China, and the need of USD is to buy goods from the United States and goods that can be paid in dollars internationally. The value of RMB or other currencies is not guaranteed. Because under today's freely convertible system, no currency has this ability.
Therefore, in order to observe whether the holding of the US dollar is damaged and whether the US dollar will become waste paper, we should also look at the purchasing power of the US dollar in China and the exchange rate of the US dollar separately, instead of just looking at the exchange rate of the US dollar against the RMB. In other words, the former depends on the price level in the United States, while the latter depends on the dollar index.
In the past 10 years, the inflation rate in the United States was not high, with an average annual growth rate of about 2.5%. As far as the purchase of Boeing 747 aircraft is concerned, its price has increased from $300 million in 2008 to $365,438+07 million in 2065,438+00, with an annual growth rate of 2.87%. This shows that although the domestic purchasing power of US dollars held by China has declined compared with other currencies in the world, the decline is still the lowest.