Current location - Loan Platform Complete Network - Foreign exchange account opening - How does the interest rate rise affect the money supply?
How does the interest rate rise affect the money supply?
Interest rate adjustment belongs to national macro-control-economic means-fiscal policy-monetary policy. When the interest rate of RMB rises, the same amount of money can be exchanged for more foreign currencies, which means that China's foreign exchange reserves are quietly decreasing when the interest rate rises (foreign exchange reserves are stored and calculated in foreign currencies). The rise of RMB exchange rate is good for imports and bad for exports, which will be affected in foreign transactions.