1. What happened when the exchange rate of RMB against the US dollar rose to 6.5? In June 2020 165438+ 10/7, the central parity of RMB exchange rate in the inter-bank foreign exchange market was $65438 +0 to RMB 6.5762, which was 286 basis points higher than the previous trading day and rose to the 6.5 yuan era. In addition, both onshore and offshore RMB exchange rates against the US dollar rose to the 6.5 yuan era.
2. What will happen if the exchange rate of RMB against the US dollar rises to 6.5 times? 1. The economic effect of RMB appreciation is equivalent to the overall increase of export commodity prices. Of course, the consequence is to curb exports, which is obviously not conducive to economic development. 2. The rapid appreciation of RMB will reduce foreign direct investment. If the renminbi appreciates, it means that foreign investors have to pay more dollars, and the consequence is that foreign investment will decrease. This will lead to an increase in unemployment rate. In China, exports account for about 30% of GDP. If the local currency appreciates, export enterprises will inevitably lose money or even close down, leading to unemployment and further increasing the hidden danger of social instability. This will lead to the further expansion of foreign debt. The appreciation of RMB exchange rate will attract a large amount of capital to flow into China's capital market and correspondingly expand China's foreign debt. 5. Affect the stability of the financial market. Most of the capital markets are active in international hot money, which is a potential factor of financial market turmoil because of its large scale, fast flow and strong profitability. In the case that China's financial supervision system needs to be further improved and the development of financial market is relatively lagging behind, the profit-seeking behavior of a large number of short-term capital flowing into the capital market through various channels will easily lead to a monetary and financial crisis and adversely affect the sustained and healthy development of China's economy.
3. What does RMB exchange rate appreciation mean? The appreciation of RMB exchange rate means that the exchange rate of RMB against other countries' currencies has risen. That is, the RMB has appreciated and can be exchanged for more foreign currencies. 4. What does it mean for RMB to rise to 6.5 times against the US dollar? The exchange rate of RMB against the US dollar rose to 6.5 times, which means that RMB rose against the US dollar and RMB appreciated against the US dollar. The rise of the US dollar against RMB means the appreciation of the US dollar against RMB.