costume jewelry parts wholesale What is the relationship between RMB appreciation and inflation? If you can give an example, it will be grateful! Thank you
Can you give an example?
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jewelry stamping supplies wholesale The appreciation of the renminbi is relative to international currencies. The depreciation of the currency rising degradation depends on the demand for the RMB in the international community. For example, if China's economic development is better, it will attract foreign capital to enter China. How to enter the RMB? In this way, the demand for the renminbi is increased. The more China attract foreign capital, the stronger the international demand for the RMB, and the greater the possibility of the appreciation of the renminbi. Inflation is a currency phenomenon, a currency depreciation phenomenon caused by a country's currency supply exceeding the demand for currency. China ’s inflation is relatively serious at this stage, mainly because of the country’ s capital investment. As for why it invested so much currency, it is because China ’s trade surplus is large and foreign exchange creates more foreign exchange. In order to use it in the country, that is to say, Bank of China must find the equal amount of RMB to exchange excess foreign exchange, which causes the currency supply to be severely exceeded the demand and cause the renminbi depreciation. Of course, inflation is also affected by many other factors, such as cost promotion, demand, and people's expectations for inflation.
displays jewelry wholesale Generally speaking, if currencies other than RMB in the world, such as the US dollar, are stable, then the RMB appreciates, the price of Chinese manufacturers import foreign raw materials will be relatively reduced, thereby reducing production costs, reducing market prices, and alleviating inflation.
But the problem is that now our renminbi appreciate, foreign countries also need to send currency to stimulate the economy due to economic downturn, such as the United States QE1, QE2 (quantitative easing monetary policy). The lower, the euro is lower, and the pound is lower, so the renminbi appreciation is gone at all in reducing the price of raw materials. Even due to the increase in external liquidity, the price of international commodities rises much more than the RMB appreciation rate (the fact is that this is the case, because the world commodities Basically, they are settled in the US dollar), so the appreciation and inflation of the renminbi have no relationship.
It, I still have a personal opinion on this issue behind, but if there is discomfort, I can't find any discomfort, so I will not send it.
cheap wholesale jewelry websites RMB appreciation, decrease in exports, and increase in imports are conducive to reducing foreign exchange reserves, or slowing the growth rate of foreign exchange reserves, suppressing inflation
Simply speaking, foreign exchange reserves increased by one dollar, indicating that one dollar is sold abroad. The state also issues 6 RMB to buy this $ 1, so the money in the society has increased 6 RMB and exacerbated inflation.