何新人民币升值（The appreciation of the renminbi）.docVIP

何新人民币升值（The appreciation of the renminbi） Why would a stronger yuan lead to inflation To answer this question, we need to understand where Chinas foreign exchange reserves come from. Chinas foreign exchange reserves are mainly from two aspects: 1. Income from foreign trade (trade income and trade surplus), Second, capital inflow of external investment. Let me start by talking about the foreign exchange reserves that come from foreign trade routes. People know that Chinas financial system is unique and the state implements foreign exchange control, which is the system of forced settlement. A company, for example, is an export company that sells $100 million of products to foreign countries each year. A companys revenue of $100 million in foreign exchange, from abroad to bank of China. According to the state administration of foreign exchange, the bank of China has left the $100 million, while paying A company rmb677 million in accordance with the current RMB exchange rate of RMB 1/6.77. The country left $100 million in immigration and then paid 677 million yuan. In other words, the central bank issued 677 million yuan, or $100 million in revenue. The $100 million is the collateral of the renminbi, or foreign currency collateral that keeps the renminbi from falling. If A company needs to import $100 million of raw materials in the future, it will need to return the $100 million to bank of China for 677 million yuan. And then the country gives $100 million to A company from the foreign exchange reserves, and thats going to return the 677 million yuan. If Chinas export trade income to $1 trillion a year, so the central bank in the increase of $1 trillion in foreign exchange reserves at the same time, also want to put a () 6.7 trillion yuan to flow into the domestic market. Chinas economy has boomed on the surface in recent years. Everyone feels that people have more money in their hands than in the past, and the Chinese have suddenly become very rich. So where does all