The exchange rate fluctuation risk and currency transaction cost in foreign trade and investment will also be reduced. Perhaps in real life, many people like to travel abroad. The most troublesome thing about traveling abroad is to exchange foreign currency. For example, you need to convert the exchange rate before departure and make an appointment with the bank in advance. After returning home, we have to change the remaining foreign currency cash into RMB, so we have to re-book the bank. In this process, exchange rate losses will occur, and the operation steps are particularly complicated.

We shop at Taobao at home. We have everything we need, such as daily necessities, clothes and stationery. We pay in RMB. Whether the exchange rate changes or not is not important; But once we go abroad, foreigners will buy our China goods in dollars on Taobao. If we sell things around 7 yuan at the previous domestic exchange rate and then change them into US dollars, it will be US$ 65,438 +0. Once the exchange rate changes, the RMB appreciates and the dollar depreciates. In the past, RMB in 7 yuan could be exchanged for 1 USD, but now it can only be exchanged for 6 yuan.

Therefore, if we also buy our products from China, the direct premium of RMB in 7 yuan is about USD 65,438+0.65,438+0,65,438+00%, which is the impact of exchange rate changes on foreign trade. China has the largest foreign exchange reserves of US dollars in the world, and it is also the country that buys the most US Treasury bonds. The former is worth about $4 trillion, while the latter is worth more than 1 trillion. In recent years, the yield of US Treasury bonds is quite low, about 2-3% per year. In the past few years, the appreciation of RMB has greatly exceeded this ratio, which means that China's foreign exchange assets are actually depreciating.

In addition, China can't sell such a large amount of national debt, because once it is sold, it will lead to the collapse of the US national debt market, and China will lose more. Judging from the current situation of the international market, although China has been urging the RMB not to appreciate too much, because it will impact the foreign trade market, the United States is printing money crazily. In fact, it broke the balance and took the initiative to devalue the dollar, so even if China does nothing, exchange rate changes are inevitable.