The RMB will continue to depreciate against the Australian dollar in the future. In 2007, the balance of China's foreign exchange reserves reached $654.38+052.82 billion, an increase of $466.5438+09 billion over the end of last year. Due to China's compulsory foreign exchange settlement policy, all foreign exchange must be converted into RMB, that is to say, nearly 3 trillion RMB was printed and distributed in 2007, which did not create any value! Equivalent to 16.2% of GDP in 2007! This is why the appreciation of RMB abroad and depreciation at home make people's lives more difficult. On the other hand, in Japan where the yen appreciates, prices are low and people live a comfortable life. Taking history as a mirror, let's review the Asian financial turmoil of 1997. The Asian financial turmoil was caused by currency devaluation. In response to Malaysian Prime Minister Mahadi's remarks that he was a "bad boy" in the international financial community at the annual meeting of 1998, Soros said that this was a rhetoric of shirking responsibility, and he was punishing those immoral, irresponsible and indiscriminate governments! If you don't waste money, how can he sell so many of your own coins! The impact of currency depreciation on the economy deserves our deep consideration.