The U.S. dollar has fallen sharply. What's the exchange rate between RMB and U.S. dollar today?
On November 29, Powell's argument changed significantly. The US dollar fell sharply, with the RMB central parity rate at 6.8384, up 147 points
What's the exchange rate between RMB and US dollar today?
On the 29th, the central parity rate of RMB against the US dollar was increased by 147 basis points to 6.8384
Rate is the exchange rate between currencies of different countries. It mainly refers to the US dollar to measure the appreciation or depreciation of currencies of different countries. The main reasons for using US dollar as the measurement standard are as follows: first, US dollar is the universal currency in the world. Since the Second World War, US dollar has replaced British pound as the world currency. It has a history of more than 70 years, and the economic development of the United States is relatively stable; Second, the U.S. dollar is the main foreign exchange reserve currency of all countries. Despite the announcement of the International Monetary Fund (IMF), in the second quarter of 2018, the U.S. dollar ranked first, accounting for 62.25%, and the euro ranked second, accounting for 20.26%. It can be seen from the data that the U.S. dollar as a foreign exchange reserve currency has a relatively large advantage and is needed by all countries; Third, the U.S. dollar is the main payment currency in the world. As of July 2018, the U.S. dollar accounts for 38.99%, ranking first, while the euro accounts for 34.71%, ranking second. The U.S. dollar also has some advantages over the euro. To sum up, the US dollar is still the most important currency in the world. All countries will use the US dollar to measure the appreciation and depreciation of their own currencies. What causes the change of exchange rate, and what influence does the change of exchange rate have on economic development and people's life?
In China, for example, the exchange rate between RMB and US dollar was 8.2784 in 2000 and 6.1932 in 2013. In just 13 years, RMB appreciated 33.67% against US dollar. In recent ten years, China's economy has maintained rapid growth. Foreign capital can not only catch up with China's rapid development, but also earn foreign exchange differences. If foreign capital invested US $1 million in China in 2000, then US $1 million can be converted into US $1.3367 million in 2013. In this way, foreign capital not only earned the profit income of enterprise production, but also earned a lot of interest balance. However, when the economic growth slows down and the currency is expected to depreciate, foreign capital will choose to withdraw.
What kind of influence does the change of exchange rate have on economy and life? The increase of exchange rate enhances the purchasing power of currency in disguise, which is conducive to import trade. For example, if the exchange rate between RMB and US dollar is 6.8 and the original commodity is 100 US dollars, then we need 680 yuan to buy this commodity domestically. When the currency appreciates, the exchange rate between RMB and US dollar is 6.5, and 650 yuan is needed to buy this commodity domestically. Due to the appreciation of the currency, we can reduce the cost by 30 yuan. In life, due to the appreciation of currency, it can reduce the cost of our travel abroad, reduce the cost of our purchase of imported goods, and reduce the cost of overseas labor services. The exchange rate reduction is conducive to the export of goods, because domestic goods are denominated in RMB, and exports get us dollars. When the currency depreciates and the US dollar price of goods remains the same, more RMB can be settled and more profits can be obtained.
The change of exchange rate can directly reflect the development trend of an economy. The continuous improvement of the economy and the level of science and technology will be conducive to the rapid growth of the whole economic volume, resulting in the continuous enhancement of exchange rate and the attraction of a large number of international capital investment. However, if the economic growth slows down and the level of science and technology stagnates, the growth of the whole economic volume will slow down, leading to the weakening of the exchange rate and the gradual escape of international capital from the economy. Of course, the large fluctuation of exchange rate is not conducive to the stable development of the economy. Only when the exchange rate is adjusted smoothly can the economy maintain stable development.