The Impact Of RMB Appreciation

- Jan 14, 2019 -

(The news from Singapore UNL Shipping & Logistics Pte Ltd )

1. Good overseas online shopping travel and study abroad

For ordinary consumers, the biggest effect of a stronger yuan is that the yuan is worth more.To travel abroad

Shopping and study abroad, will spend less money than before, or spend the same money, can do more things than before.

Of course, from the perspective of cost performance, to visit overseas online shopping and tourism, we have to choose the RMB against the local currency appreciation of the larger countries.

2. Positive for stocks and bonds

A stronger yuan would also have an impact on investors in capital markets, excluding those who are betting against the yuan.

A stronger yuan is likely to attract more international capital inflows and boost domestic liquidity in the short term, which would be positive for stocks and bonds.When markets are good, investors are good.

3. RMB appreciation or adverse export

The drawback of RMB appreciation is that it is not conducive to export and affects the profits of export enterprises.

Of course, there are advantages and disadvantages to both appreciation and depreciation of the RMB.In the long run, only stability within a certain range is most conducive to national economic development.

One might say, well, we don't care why it's going up, we just care how long it's going to go up. Experts also have something to say about the thorny issue.


China merchants securities chief Xie Yaxuan macroeconomic analyst believes that over the past few years, the dollar index was stronger in many asset prices, including the suppression effect, the end of the cycle of a strong dollar in the future will have important impact on a range of asset prices, emerging market currencies is expected to get rid of the situation of pressure, the RMB exchange rate is expected to be stabilising.

Of course, the mid - to long-term trend of the RMB exchange rate still depends on the fundamentals. The stability and resilience of the national economy will continue to grow, the financial market will further open to the outside world, market expectations will continue to improve, and China's balance of payments and foreign exchange reserves will remain balanced and stable in the future, all of which will provide strong support for the RMB exchange rate.

At the same time, some experts believe that China's economic growth is still facing downward pressure and the sino-us trade negotiations are still facing great uncertainty. It is difficult to assert that the RMB will have a trend of substantial appreciation, but it is possible to maintain basic stability at a reasonable and balanced level.

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