A large amount of capital flows into China, which should have allowed the currency to appreciate, but with more money, inflation will naturally occur. Isn't inflation devalued? Please ask professionals to answer, thank you. This kind of appreciation is external appreciation, and the causal relationship seems wrong. First of all, the expectation of appreciation will lead to a large inflow of capital. Just like China at this stage, knowing that RMB will appreciate, there will be a lot of hot money flowing in waiting for appreciation. At present, due to the loose monetary policy during the financial crisis, the liquidity in China is too loose. Coupled with the continuous inflow of hot money, rising commodity prices and imported inflation, the current CPI is rising step by step and inflation is getting worse. . . . Seriously devalued.

To sum up, it is external appreciation and internal depreciation.