In an open economic conditions, exchange rate changes on a country's economic development has a crucial importance. Since July 21, 2005 Since the People's Bank announced that the RMB exchange rate reform, the RMB exchange rate against the U.S. dollar has been in a slow upward trend. This paper discusses the background and the appreciation of the RMB exchange rate changes and the relationship between export and import growth, combined with the economic status of China's foreign trade and current economic trends, analyzing the future revaluation of the yuan's foreign trade and economic effects of
1. RMB appreciation of the background and reasons for
The background of appreciation of the RMB
Since July 21, 2005 Since the People's Bank announced that the RMB exchange rate reform, the RMB exchange rate against the U.S. dollar has been in a slow upward trend. January 4, 2006 to 8.0702 yuan central parity rate started, the RMB exchange rate has gone up from a slow to the sprints, then to "buildup" process. Accordance with the December 29 exchange rate of 7.8087 U.S. Dollar terms, the renminbi has appreciated during the year 2615 basis points.
The reasons for the appreciation of yuan
There is pressure on the RMB exchange rate appreciation due to a complex international social, political and economic interests combines issues. Of international demands for yuan appreciation growing louder and louder, mainly based on lies in China's trade surplus and huge foreign exchange reserves.
Second, the RMB appreciation on the import and export trade impact analysis
China currency revaluation on the import of high proportion of foreign currency debt in terms of large-scale industries are long-term positive, but the export-oriented businesses, companies with high foreign currency assets, a greater impact, especially in textiles, garments, agricultural products processing, low value-added, low-margin export sector a greater negative impact.
(A) appreciation of the renminbi on the beneficial effects of China's import and export trade
1. Is conducive to reducing the cost of imported goods.
2. Conducive to the promotion of trade structure optimization and upgrading.
3. Will help improve the welfare of citizens
(B) appreciation of the renminbi against the adverse effects of China's import and export trade
1. Undermine the international competitiveness of China's exports is not conducive to China's foreign trade export growth.
2. Renminbi appreciation will increase imports of foreign products, increased competition in the domestic market.
3. For China's export industries and traditional industries can cause a serious impact.