The relationship between interest rate reduction and virtual cur

1. The interest rate rection of RMB has nothing to do with digital currency. However, the supervision of digital currency is not standardized, and the market is still chaotic. It is suggested to be cautious.

2. The US dollar's interest rate cut actually promotes the further appreciation of RMB
the interest rate of the US dollar has been reced, while the interest rate of our country is constantly increasing, and the interest level of our country has been higher than that of the US dollar. Then a large amount of hot money in the international market will convert US dollars into RMB and flow into China in the foreign exchange market. Then, according to the simple relationship between supply and demand. As the demand for RMB increases, the exchange rate will rise, which will further exert pressure on RMB appreciation
the main impact on the stock market is the impact of RMB appreciation on the stock market. Benefiting from the appreciation of RMB, banks and real estate are the main revenue sectors.

3. Interest rate rection will lead to currency devaluation, because the decrease of interest rate means less income from holding the currency again. The US dollar has been in continuous devaluation, and every interest rate rection will increase the speed of devaluation in the short term

currency devaluation: (also known as currency devaluation) is the symmetry of currency appreciation, which refers to the decline of the value contained in or represented by the unit currency, that is, the decline of the unit currency price
from the domestic point of view, currency devaluation under the metal currency system refers to the measures to rece the legal metal content of the domestic currency and its price to metal ratio, so as to rece the value of the domestic currency; In modern paper currency system, currency devaluation refers to the decline of the value of paper currency when the quantity of paper currency in circulation exceeds the demand for money
from an international point of view, the value of a currency is expressed as the exchange capacity with foreign currencies, which is reflected in the change of exchange rate. At this time, currency devaluation refers to the decrease of the exchange capacity of a unit of domestic currency to foreign currencies and the decrease of the foreign exchange rate of domestic currency.

4. The interest rate cut is bad news for the exchange rate of the country's currency

because the interest rate cut means that the income of holding this currency has decreased

that is, the pound will depreciate and other currencies with stable interest rates will appreciate

5. Printing and distributing money by the state is the initial mode, that is, only money can circulate in the market when the state prints money. Now the money in the market is printed by the state, which is a direct way. But the interest rate rection is to create money indirectly by recing the market benchmark interest rate and expanding the money multiplier.

6. The reasons for the devaluation of the national currency caused by the central bank's interest rate rection are as follows:
1. After the interest rate rection, the bank deposits will decrease and the loans will increase, so as to stimulate consumption, increase domestic demand and increase the currency circulation, that is, to slow down the economic recession
2. The influence of interest rate on exchange rate. The rise of a country's interest rate will make its financial assets more attractive to domestic and foreign investors, which will lead to capital inflow and exchange rate appreciation. Of course, the relative difference between the interest rate of a country and that of other countries should also be considered here. When the interest rate of a country increases, it means that the opportunity cost of domestic consumption increases, which leads to the decline of consumption demand. At the same time, it also means that the cost of capital utilization increases, and the domestic investment demand also decreases. In this way, the decline of the total level of domestic effective demand will expand exports and rece imports, So as to increase the country's foreign exchange supply, rece its foreign exchange demand, make its currency exchange rate appreciation
4, rece the cost of loans, and attract foreign investment, that is, increase investment.

7.

After the interest rate is lowered, the same money will be put in the bank and the interest will be reced accordingly. Then, some people will put their money out for other investments. At this time, it is the government's policy to stimulate the economy. In order to stimulate the economic development, the government implements a loose monetary policy and increase the liquidity in the market, It is usually used in times of depression or recession

in the market, once the amount of money increases, but the market will not react so fast, there will be a buffer period. During this period, when the commodity is certain but the money increases, the commodity price will rise and the currency will depreciate relatively

When the interest rate of a country rises or is higher than that of another country, the return on financial assets of that country will rise or be higher than that of another country. In the short term, it will lead to the inflow of foreign capital. When the supply of foreign capital increases, it will lead to the increase of demand for local currency, This will lead to devaluation of foreign currency and appreciation of domestic currency

2. When the interest rate of one country falls or is lower than that of another country, the rate of return on financial assets of that country will certainly fall or be lower than that of another country. In the short term, it will cause the outflow of foreign capital. When the demand for foreign currency increases, it will cause the demand for domestic currency to decrease, which will lead to the appreciation of foreign currency and the depreciation of domestic currency

reference materials guangming.com