First of all, the RMB exchange rate is the ratio of RMB to another country's currency, and the appreciation of RMB means that 1 RMB can be exchanged for more foreign currencies. RMB exchange rate quotation generally refers to the quotation of USD against RMB, that is, how much RMB 1 USD is converted into. Exchange rate appreciation means RMB depreciation. For example, in the past, 1 USD was quoted at 6.8 against RMB, but now it is quoted at 8, which means that the exchange rate rises and the RMB depreciates.
There are many factors for RMB exchange rate to rise (RMB depreciation). For example, the withdrawal of the Federal Reserve's QE policy, the appreciation of the US dollar exchange rate in a certain period of time, and a large amount of capital will return to the United States. There are also some domestic factors, such as the control of the central bank, the debt repayment peak of the local government financing platform, and the decline of the real economy, which have all led to the depreciation of the RMB.
Extended data:
If the exchange rate rises and the RMB depreciates, there will be many unfavorable factors.
1, the depreciation of local currency will cause trade friction, which is extremely unfavorable to the national economic stability.
2. Devaluation will not solve the problem of slowing external demand. Although depreciation will help export enterprises survive by reducing costs, it is difficult to last. Especially for industries that have lost competitiveness in China, depreciation will only delay the withdrawal of industries.
References:
RMB exchange rate _ Baidu Encyclopedia