When will the devaluation of RMB stop? The exchange rate fell below 7.3!

It is reported that last Tuesday, the Bank of China announced that it had lowered two key lending rates. This move is very unexpected to the market. Shortly after the interest rate cut, the exchange rate of offshore RMB against the US dollar fell to 7.31 yuan, the lowest level since this year, and then rebounded slightly.

It is understood that on the 16th of this month, the exchange rate of offshore RMB against the US dollar fell below 7.33 in the course of trading, and fell by more than 800 basis points for five consecutive trading days, setting a new low since November last year. At the same time, the onshore RMB exchange rate also hovered around 7.3.

Due to the fluctuation of exchange rate, the cost of studying abroad and shopping abroad has increased. At present, the RMB needed to exchange 10,000 dollars is about 4,000 yuan more than that of half a year ago. However, the decline in exchange rate has also had a positive impact on exports.

The frequent fluctuation of the RMB exchange rate against the US dollar is lower. Tan Yaling, president of China Foreign Exchange Investment Research Institute, believes that this is related to the shock of the US dollar index. The recovery of domestic economic fundamentals is less than expected, especially in July when the pessimistic financial data was released, which is also an important reason for this situation.

The depreciation of RMB will increase the cost of studying abroad and shopping overseas. It costs about 4000 yuan more to exchange 10000 dollars than it did six months ago. However, the decline in the exchange rate has also brought benefits to exports.

According to industry analysts, the falling exchange rate will boost exports to some extent, improve the price competitiveness of export products, stabilize export market share, and improve the balance of payments to some extent.

At present, the pressure faced by the export sector is a universal phenomenon in the world, which is basically caused by the current slowdown in global economic growth and weak external demand. In the second half of the year, it is expected that the downward pressure on major developed economies such as Europe and the United States may further increase, and the overall situation of external demand is still not satisfactory. In addition to the adjustment function of exchange rate on the balance of payments, it may be necessary to cooperate with other measures to stabilize foreign trade and stimulate exports.


Post time: Aug-21-2023