Raising interest rates generally refers to raising the benchmark interest rate. Raising interest rates in the United States generally means that the interest rate of bank deposits in the United States will increase. So if the United States raises interest rates, will the RMB depreciate? Why does the RMB depreciate when the US raises interest rates? I have prepared relevant contents for your reference.

If the United States raises interest rates, will the RMB depreciate?

If the United States raises interest rates, the RMB will depreciate. Raising interest rates in the United States means that the deposit interest rate in the United States will increase, and then the dollar will appreciate, which may have certain influence and pressure on the RMB.

Generally speaking, the interest rate increase of the US dollar will lead to a large amount of global funds flowing into the United States, because people will invest in the US market in many ways, which may lead to the decline of some foreign exchange markets and precious metals.

Why does the RMB depreciate when the US raises interest rates?

Because raising interest rates in the United States means raising the interest rate of bank deposits in the United States, many people will put their money in the bank, so that everyone will want to hold US dollars and exchange their currencies for US dollars. In this way, if the US dollar appreciates, all currencies in the world may depreciate, and so will the RMB.

But don't worry too much, the impact is only temporary, and China will definitely adjust. For ordinary people, if there is not much money saved, the impact will not be great, because there are no assets, or there are not many assets, and the possibility of shrinking is relatively small, so don't worry too much.