What does the rise in foreign exchange rate mean?

The rise of foreign exchange rate means that less foreign currency can be exchanged for more RMB, which is good for China's exports, because things from China are cheaper to sell abroad, but it is not good for imports, because foreign things are expensive in China's eyes.

First, the appreciation of the RMB exchange rate means that the RMB has become more valuable and it is cheaper for us ordinary people to buy things. Why do you say that? For example, if we need 1 10,000 dollars to buy an American car, then we need to prepare 70,000 RMB. Now, after the exchange rate rises, you only need to prepare 40 thousand RMB to buy this car, which is nearly half cheaper. Everyone must be very happy, which means that the purchasing power of RMB is stronger, and going out to buy some other international goods will save nearly half of the money.

Second, although it is cheaper for ordinary people to buy things, the rise of RMB exchange rate may have a great impact on exports. Why? In the international market, the relative price of goods manufactured by enterprises in China is lower than that of similar goods in other countries, so the goods exported by China are more competitive, which is also the reason why they are bought by many other countries. If the RMB exchange rate rises, then the goods exported by China will have no advantage, because originally; Cheap goods will not be cheaper because of the appreciation of RMB exchange rate, so it has a great impact on exports and is not good for the country, so the exchange rate will not rise too much, and it will not affect if it is only fine-tuned.

Thirdly, in terms of investment, China has always been the country that attracts the most overseas investment, because our country has certain advantages in various fields of industrial and agricultural services. In addition, China is currently a developing country, and the rise of RMB exchange rate directly affects our employment and export expansion, which is very unfavorable to China's economic development. For example, Country M originally wanted to invest 7 million yuan in China's industrial market. Originally, according to the exchange rate of RMB against the US dollar of 7: 1, only need to invest 1, 1 equivalent to 7 million RMB. Now the conversion of RMB into US dollars is 4: 1, so if the United States wants to invest 7 million RMB, it needs 1.75 million US dollars to convert to 7 million RMB, and country M needs to pay 750,000 more.