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The Impact of the Decline of the US Dollar Exchange Rate on China

Recently, the exchange rate of the U.S. dollar to the RMB has shown a downward trend. The decline in the exchange rate can be said to be the depreciation of the U.S. dollar, or theoretically, the relative appreciation of the RMB. In this case, what impact will it have on China?

The appreciation of the RMB will reduce the price of imported products and increase the price of export products, thereby stimulating imports, curbing exports, reducing international trade surpluses and even deficits, causing some enterprises to operate difficulties and reduce employment. At the same time, the appreciation of the RMB will increase the cost of foreign investment and the cost of foreign tourism in China, thus restricting the increase in foreign direct investment and the development of the domestic tourism industry.


Post time: Sep-02-2020