The harm of virtual currency to the country
Publish: 2021-05-15 13:03:58
1. In the notice on preventing bitcoin risk issued by the central bank and other five ministries and commissions at the end of 2013, bitcoin is clearly defined as a special Internet commodity, and people can buy and sell freely at their own risk, denying its monetary attribute. All financial institutions are not allowed to provide bitcoin related services. Bitcoin related websites must be put on record and require users to carry out real name authentication. Zhou Xiaochuan, central bank governor, said in an interview that bitcoin is a tradable asset like a stamp
in a word, virtual currency represented by bitcoin is legal in China, but the government takes a cold attitude towards virtual currency, which is neither positive nor negative. Most of the major countries in the world also adopt a cold attitude towards virtual currency
since 2015, the popular virtual currencies are bitcoin, Laite coin, Fuyuan coin, doggy coin, reborn coin and so on
it is possible, but at present, the government has not banned it
bitcoin and other virtual currencies exist legally in China. In the 2013 bitcoin risk notice, the central bank and other five ministries and commissions clearly defined bitcoin as a special Internet commodity. People can buy and sell it freely at their own risk. Financial institutions do not have to provide bitcoin related services, denying its monetary attribute. Zhou Xiaochuan, the governor of the central bank, compares bitcoin to a tradable asset like a stamp< Most of the major countries in the world take a cold attitude towards virtual currency. There are several possibilities for countries to ban virtual currency:
1
2. The well-known weaknesses and defects of virtual currency can not be overcome in a certain period of time
3. The government can't stand the use of virtual currency in money laundering and other illegal activities
since 2013, the popular virtual currencies are bitcoin, Fuyuan coin, Laite coin, doggy coin, Ruibo coin, Yuanbao coin and so on<
Zhou Xiaochuan, governor of the central bank, said at the Boao Forum for Asia that virtual currency is not a currency approved by the central bank and can not be banned. Since digital currency is not the currency initiated and approved by the central bank, it can not be banned. Digital currency belongs to digital assets, which can be freely traded between indivials. Therefore, digital currency is not MLM, not capital disk, but a kind of financial investment
in fact, the central bank has been studying digital currency for a long time. From the perspective of historical development trend, money has always evolved with the development of technological progress and economic activities. From the early physical money, commodity money to the later credit money, it is a natural choice to adapt to the development of human commercial society. As the currency of the previous generation, paper money has low technology content. From the perspective of safety and cost, it is the general trend to be replaced by new technology and new procts. In particular, with the development of the Internet and the great changes in payment methods all over the world, the establishment of digital currency issuance and circulation system is very necessary for the construction of financial infrastructure and the promotion of economic quality, efficiency and upgrading
does China recognize virtual currency_****** In the notice on bitcoin risk prevention issued by the central bank and other five ministries and commissions at the end of 2013, bitcoin was clearly defined as a special Internet commodity. People can buy and sell bitcoin freely at their own risk, denying its monetary attribute. Financial institutions are not allowed to provide services related to bitcoin, and bitcoin related websites must be put on record, In a word, the virtual currency represented by bitcoin is legal in China, but the government takes a cold attitude towards it, Most of the major countries in the world also adopt a cold attitude towards virtual currency. Since 2015, the popular virtual currencies include bitcoin, Wright coin, Fuyuan coin, doggy coin, Ruibo coin, etc.
Why do not countries ban virtual currency; In other words, what is the connection and difference between the value represented by virtual currency and the value represented by general currency? 3. In view of the depth of the background of the problem, we need to stand higher in the starting point of the research. Currency is a problem in the category of modernity, The problem of virtual currency is the problem of postmodernism. They do not share the same basic paradigm. It is the difference of paradigm, not virtual phenomenon, that leads to the difference between them.
why does China not stop virtual currency_****** As a new thing, virtual currency has its progressive side. One of China's attitudes towards new things is that the law does not prohibit it. However, if virtual currency poses a threat to the existing financial system, the government will take action, What follows is the public...
which countries recognize the legitimacy of virtual currency_****** At present, Japan has recognized bitcoin as legal
is virtual currency recognized by the state_****** No, because it involves money laundering, easy to crash and other factors. Although bitcoin, the most famous virtual currency, can not be said to be suppressed, there are very few transactions between physical objects and virtual currency abroad, and its prospect still remains to be seen, The pure pyramid structure will not be recognized by the state.
is there any policy in China to prohibit the trading of virtual currency****** At the end of 2013, the central bank and other five ministries and commissions jointly issued a bitcoin risk notice, in which bitcoin is clearly defined as a special Internet commodity, and people can buy and sell freely at their own risk, denying its monetary attribute, In an interview with the Boao Forum, President Yang Xiaochuan compared bitcoin to a tradable asset like a stamp, and the central bank has no right to ban it. Since 2013, popular virtual currencies include bitcoin, Leyte, Fuyuan, doggy, etc Is China's virtual currency legal_****** Virtual currency can trade bitcoin, Leyte and ether on chinacoin.com.
is virtual currency illegal in China_****** Virtual currency exists legally in China, but it is illegal to engage in illegal activities by using virtual currency. The notice on preventing bitcoin risks issued by the people's Bank of China and other five ministries and commissions defines the nature of bitcoin, believing that bitcoin is not issued by the monetary authority and has no monetary attributes such as legal compensation and compulsion, Not really...
will China ban all virtual currency commercial transactions? Will virtual currency be banned_****** How to buy and sell virtual currency after China forbids virtual currency trading
how does the state treat virtual currency in 2017****** At present, there is no official recognition of the value of virtual currency in China, but only in some areas suspected of causing actual harm to society, some recognize its existence value
in a word, virtual currency represented by bitcoin is legal in China, but the government takes a cold attitude towards virtual currency, which is neither positive nor negative. Most of the major countries in the world also adopt a cold attitude towards virtual currency
since 2015, the popular virtual currencies are bitcoin, Laite coin, Fuyuan coin, doggy coin, reborn coin and so on
it is possible, but at present, the government has not banned it
bitcoin and other virtual currencies exist legally in China. In the 2013 bitcoin risk notice, the central bank and other five ministries and commissions clearly defined bitcoin as a special Internet commodity. People can buy and sell it freely at their own risk. Financial institutions do not have to provide bitcoin related services, denying its monetary attribute. Zhou Xiaochuan, the governor of the central bank, compares bitcoin to a tradable asset like a stamp< Most of the major countries in the world take a cold attitude towards virtual currency. There are several possibilities for countries to ban virtual currency:
1
2. The well-known weaknesses and defects of virtual currency can not be overcome in a certain period of time
3. The government can't stand the use of virtual currency in money laundering and other illegal activities
since 2013, the popular virtual currencies are bitcoin, Fuyuan coin, Laite coin, doggy coin, Ruibo coin, Yuanbao coin and so on<
Zhou Xiaochuan, governor of the central bank, said at the Boao Forum for Asia that virtual currency is not a currency approved by the central bank and can not be banned. Since digital currency is not the currency initiated and approved by the central bank, it can not be banned. Digital currency belongs to digital assets, which can be freely traded between indivials. Therefore, digital currency is not MLM, not capital disk, but a kind of financial investment
in fact, the central bank has been studying digital currency for a long time. From the perspective of historical development trend, money has always evolved with the development of technological progress and economic activities. From the early physical money, commodity money to the later credit money, it is a natural choice to adapt to the development of human commercial society. As the currency of the previous generation, paper money has low technology content. From the perspective of safety and cost, it is the general trend to be replaced by new technology and new procts. In particular, with the development of the Internet and the great changes in payment methods all over the world, the establishment of digital currency issuance and circulation system is very necessary for the construction of financial infrastructure and the promotion of economic quality, efficiency and upgrading
does China recognize virtual currency_****** In the notice on bitcoin risk prevention issued by the central bank and other five ministries and commissions at the end of 2013, bitcoin was clearly defined as a special Internet commodity. People can buy and sell bitcoin freely at their own risk, denying its monetary attribute. Financial institutions are not allowed to provide services related to bitcoin, and bitcoin related websites must be put on record, In a word, the virtual currency represented by bitcoin is legal in China, but the government takes a cold attitude towards it, Most of the major countries in the world also adopt a cold attitude towards virtual currency. Since 2015, the popular virtual currencies include bitcoin, Wright coin, Fuyuan coin, doggy coin, Ruibo coin, etc.
Why do not countries ban virtual currency; In other words, what is the connection and difference between the value represented by virtual currency and the value represented by general currency? 3. In view of the depth of the background of the problem, we need to stand higher in the starting point of the research. Currency is a problem in the category of modernity, The problem of virtual currency is the problem of postmodernism. They do not share the same basic paradigm. It is the difference of paradigm, not virtual phenomenon, that leads to the difference between them.
why does China not stop virtual currency_****** As a new thing, virtual currency has its progressive side. One of China's attitudes towards new things is that the law does not prohibit it. However, if virtual currency poses a threat to the existing financial system, the government will take action, What follows is the public...
which countries recognize the legitimacy of virtual currency_****** At present, Japan has recognized bitcoin as legal
is virtual currency recognized by the state_****** No, because it involves money laundering, easy to crash and other factors. Although bitcoin, the most famous virtual currency, can not be said to be suppressed, there are very few transactions between physical objects and virtual currency abroad, and its prospect still remains to be seen, The pure pyramid structure will not be recognized by the state.
is there any policy in China to prohibit the trading of virtual currency****** At the end of 2013, the central bank and other five ministries and commissions jointly issued a bitcoin risk notice, in which bitcoin is clearly defined as a special Internet commodity, and people can buy and sell freely at their own risk, denying its monetary attribute, In an interview with the Boao Forum, President Yang Xiaochuan compared bitcoin to a tradable asset like a stamp, and the central bank has no right to ban it. Since 2013, popular virtual currencies include bitcoin, Leyte, Fuyuan, doggy, etc Is China's virtual currency legal_****** Virtual currency can trade bitcoin, Leyte and ether on chinacoin.com.
is virtual currency illegal in China_****** Virtual currency exists legally in China, but it is illegal to engage in illegal activities by using virtual currency. The notice on preventing bitcoin risks issued by the people's Bank of China and other five ministries and commissions defines the nature of bitcoin, believing that bitcoin is not issued by the monetary authority and has no monetary attributes such as legal compensation and compulsion, Not really...
will China ban all virtual currency commercial transactions? Will virtual currency be banned_****** How to buy and sell virtual currency after China forbids virtual currency trading
how does the state treat virtual currency in 2017****** At present, there is no official recognition of the value of virtual currency in China, but only in some areas suspected of causing actual harm to society, some recognize its existence value
2. Now the virtual RMB has also been issued, and the state's policy on virtual currency must strengthen supervision. In this case, we can agree.
3. If there is no way to transfer virtual currency into legal currency, no matter how it is issued, there is no real harm
however, once it is legally linked with fiat money, it means that fiat money has the obligation to convert virtual money into fiat money. This is very dangerous
because there is no limit to the issuance of virtual currency, once there is a legal link, it is equivalent to the unlimited issuance of legal currency
although QQ coin seems to have the function of currency and can buy a lot of things on QQ, in the final analysis, it is all virtual things, and its essence is commodity.
however, once it is legally linked with fiat money, it means that fiat money has the obligation to convert virtual money into fiat money. This is very dangerous
because there is no limit to the issuance of virtual currency, once there is a legal link, it is equivalent to the unlimited issuance of legal currency
although QQ coin seems to have the function of currency and can buy a lot of things on QQ, in the final analysis, it is all virtual things, and its essence is commodity.
4.
According to the official announcement, digital assets and RMB recharge functions will be closed at 12 noon on September 27, and all trading functions will be closed at 12 noon on September 30. So far, bitcoin trading was officially sentenced to death
some people applaud the state's move to control bitcoin transactions, believing that this money laundering tool should have been closed long ago the invention of bitcoin in the United States disturbs the Chinese market. We should learn from Russia's ban on bitcoin. Although bitcoin makes money, it is not good for the development of the country because it is divorced from the real economy. Many young people are addicted to bitcoin and lose both money and people
however, at present, the state only restricts it, but it has not been completely banned. Big exchanges can not provide bitcoin exchange, so many of them go underground, making it more difficult to control
for young people, the state has banned trading, so it is too risky to re-enter the bitcoin market, so they should be cautious to intervene, and regret if they break the law
5. The virtual currency is hyped by the makers. When the new transaction was just launched, because there were few participants, the basic chips were all in the hands of the makers, so it was easy to pull up. At the same time, substantial speculation can also attract people.
6.
the fire of virtual currency, many people join in the hype of virtual currency, but virtual currency is unreliable, mainly because:
1. many virtual currencies are air currency 2 3. Exchanges are all indivial enterprises, which have the risk of running away since the advent of virtual currency, it has been favored by many investors, which has led to the price rise of many virtual currencies. Among them, the price of bitcoin has risen to tens of thousands of dollars. Under the hype, the price of other virtual currencies is also rising. From the beginning of virtual currency trading, it has soared hundreds or even thousands of times, But it just shows that virtual currency is worthless and unreliable{ RRRRR} from internal value to external use, virtual currency will not create any value and has no security. If you have any other opinions, please leave a message to discuss
7. China is now the largest creditor of the United States. China holds more than one trillion US dollars of US Treasury bonds. Once the RMB appreciation, the United States will rece its foreign debt in disguised form, and the Chinese people's daily hard-earned money will turn into American money
the actual value of foreign exchange reserves has directly declined, and the amount of money owed by countries to China has actually decreased. The biggest beneficiary is the United States. As a result, China's goods are difficult to export, and the quantity of exports will also have a great decline. On the contrary, foreign goods are easy to enter China, which makes China's economy flow into foreign countries. The appreciation of RMB may not be a good thing. The reality is that RMB has appreciated, However, prices have also risen, offsetting the benefits of appreciation. Under the general environment of rising economy, the people have not enjoyed the benefits of RMB appreciation. Take the yen as an example: the burden of yen appreciation on Japanese economy can be shown in the following aspects:
first of all, the appreciation of yen has raised the cost and price of Japanese procts. In the past, Japanese procts, which once dominated the world market with high quality and low price, all of a sudden became "aristocrats" in the commodity world. Although the appreciation of the yen has little impact on the export of those irreplaceable procts, a considerable part of Japan's exports can be replaced. The appreciation of Japanese yen will restrain the demand for such procts in the international market, thus hitting the enterprises procing such procts. This kind of attack will spread to other instries through the instrial chain, and may even form a comprehensive inhibition on Japan's economic growth. This is the "yen appreciation depression" that the Japanese government is worried about
secondly, the appreciation of yen reces the import price of Japan. Although this can make Japan, which is short of resources, exchange less expenditure for needed resources, cheap foreign manufactured goods also flow into Japan at the same time, impacting the original instrial structure of Japan. The most affected instries are those labor-intensive instries which are not high-tech but are of great significance to maintaining employment
thirdly, the sharp appreciation of yen has aroused the interest of international speculative capital, making yen the target of speculative capital. Since then, the ups and downs of the yen exchange rate and the turmoil of Japan's stock market have led to the rise and fall of international speculative capital. This has brought new factors of instability to the Japanese economy. The potential benefits of RMB appreciation are: to repay foreign debt and import trade, to curb inflation and China's overseas investment, and to move towards regional currency and international currency. But RMB appreciation has more disadvantages to China's economy. First, weaken the competitiveness of Chinese goods in the international market. The appreciation of RMB will inevitably affect the export of Chinese procts and their competitiveness in the international market. Second, the number of foreign investment in China will decrease. China's development experience has proved that the lack of foreign investment, or a sharp decline in foreign investment, will be very detrimental to China's sustainable development. Although RMB appreciation is beneficial to foreign entrepreneurs who have invested or have capital in China, because their assets will increase in value, it will make entrepreneurs who are going to invest in China stagnate. Therefore, in the long run, it is not concive to China's economic development. Third, it is not concive to the development of China's domestic tourism. Once the RMB has a substantial appreciation, it will have a negative effect on the development of China's domestic tourism. Of course, the appreciation of RMB will also promote Chinese people to travel abroad, but the resulting loss of foreign exchange is also unfavorable to China. Fourth, China's huge foreign exchange reserves will shrink substantially. China's foreign exchange reserves are as high as US $3 trillion, ranking first in the world. China's foreign exchange reserves are mainly in US dollars. As long as RMB appreciation, a large number of US dollar reserves will shrink. Fifth, China's economy is likely to get out of control. Maintaining the stability of currency exchange rate is very important for the sustainable development of a country's economy. China's financial and monetary system is not perfect. Once the currency exchange rate is greatly adjusted, the possibility of losing control is very high. Japan is a good example. The great adjustment of the yen exchange rate has failed to revive the Japanese economy since the collapse of the bubble economy in 1991. The value of money depends on its purchasing power parity. The purchasing power of RMB is actually declining, that is to say, RMB is actually devaluing in China! This is unique in the world. Due to the appreciation of RMB, our foreign exchange reserves are bearing the cost of losing an aircraft carrier every three months. In other words, we are all working for the United States. Originally, the appreciation of RMB is a good thing for China's consumers and economic development, but the appreciation of RMB is mixed with too many American factors. The reason why the United States has repeatedly asked us to raise the RMB exchange rate is mainly for two purposes. First, every time we raise RMB by one percentage point, our foreign exchange of more than 30000 billion US dollars and US Treasury bonds of more than 10000 billion US dollars will shrink by tens of billions of US dollars. Second, China's exports will rece profits, thus recing exports to the United States
now our country is kidnapped by the US dollar, which can not be raised or thrown away. Selling US Treasury bonds is obviously a double-edged sword for China, which will hurt both people and ourselves. China's massive selling of US dollar assets and US Treasury bonds will aggravate the weakness of the US dollar and eventually force the US Federal Reserve to raise interest rates, making the US economic recovery in vain. However, the United States is likely to raise the import tariff of Chinese goods by a large margin, resulting in the exclusion of Chinese goods from entering the United States, which will do great harm to China's economy, because the United States is China's largest export market, and at present China can not find a market that can replace the United States. Once exports are blocked, Chinese enterprises close down and workers lose their jobs, economic problems will turn into political problems. Therefore, selling U.S. Treasury bonds, a financial nuclear bomb, is tantamount to dying together. The United States takes advantage of China's weakness to force RMB appreciation.
the actual value of foreign exchange reserves has directly declined, and the amount of money owed by countries to China has actually decreased. The biggest beneficiary is the United States. As a result, China's goods are difficult to export, and the quantity of exports will also have a great decline. On the contrary, foreign goods are easy to enter China, which makes China's economy flow into foreign countries. The appreciation of RMB may not be a good thing. The reality is that RMB has appreciated, However, prices have also risen, offsetting the benefits of appreciation. Under the general environment of rising economy, the people have not enjoyed the benefits of RMB appreciation. Take the yen as an example: the burden of yen appreciation on Japanese economy can be shown in the following aspects:
first of all, the appreciation of yen has raised the cost and price of Japanese procts. In the past, Japanese procts, which once dominated the world market with high quality and low price, all of a sudden became "aristocrats" in the commodity world. Although the appreciation of the yen has little impact on the export of those irreplaceable procts, a considerable part of Japan's exports can be replaced. The appreciation of Japanese yen will restrain the demand for such procts in the international market, thus hitting the enterprises procing such procts. This kind of attack will spread to other instries through the instrial chain, and may even form a comprehensive inhibition on Japan's economic growth. This is the "yen appreciation depression" that the Japanese government is worried about
secondly, the appreciation of yen reces the import price of Japan. Although this can make Japan, which is short of resources, exchange less expenditure for needed resources, cheap foreign manufactured goods also flow into Japan at the same time, impacting the original instrial structure of Japan. The most affected instries are those labor-intensive instries which are not high-tech but are of great significance to maintaining employment
thirdly, the sharp appreciation of yen has aroused the interest of international speculative capital, making yen the target of speculative capital. Since then, the ups and downs of the yen exchange rate and the turmoil of Japan's stock market have led to the rise and fall of international speculative capital. This has brought new factors of instability to the Japanese economy. The potential benefits of RMB appreciation are: to repay foreign debt and import trade, to curb inflation and China's overseas investment, and to move towards regional currency and international currency. But RMB appreciation has more disadvantages to China's economy. First, weaken the competitiveness of Chinese goods in the international market. The appreciation of RMB will inevitably affect the export of Chinese procts and their competitiveness in the international market. Second, the number of foreign investment in China will decrease. China's development experience has proved that the lack of foreign investment, or a sharp decline in foreign investment, will be very detrimental to China's sustainable development. Although RMB appreciation is beneficial to foreign entrepreneurs who have invested or have capital in China, because their assets will increase in value, it will make entrepreneurs who are going to invest in China stagnate. Therefore, in the long run, it is not concive to China's economic development. Third, it is not concive to the development of China's domestic tourism. Once the RMB has a substantial appreciation, it will have a negative effect on the development of China's domestic tourism. Of course, the appreciation of RMB will also promote Chinese people to travel abroad, but the resulting loss of foreign exchange is also unfavorable to China. Fourth, China's huge foreign exchange reserves will shrink substantially. China's foreign exchange reserves are as high as US $3 trillion, ranking first in the world. China's foreign exchange reserves are mainly in US dollars. As long as RMB appreciation, a large number of US dollar reserves will shrink. Fifth, China's economy is likely to get out of control. Maintaining the stability of currency exchange rate is very important for the sustainable development of a country's economy. China's financial and monetary system is not perfect. Once the currency exchange rate is greatly adjusted, the possibility of losing control is very high. Japan is a good example. The great adjustment of the yen exchange rate has failed to revive the Japanese economy since the collapse of the bubble economy in 1991. The value of money depends on its purchasing power parity. The purchasing power of RMB is actually declining, that is to say, RMB is actually devaluing in China! This is unique in the world. Due to the appreciation of RMB, our foreign exchange reserves are bearing the cost of losing an aircraft carrier every three months. In other words, we are all working for the United States. Originally, the appreciation of RMB is a good thing for China's consumers and economic development, but the appreciation of RMB is mixed with too many American factors. The reason why the United States has repeatedly asked us to raise the RMB exchange rate is mainly for two purposes. First, every time we raise RMB by one percentage point, our foreign exchange of more than 30000 billion US dollars and US Treasury bonds of more than 10000 billion US dollars will shrink by tens of billions of US dollars. Second, China's exports will rece profits, thus recing exports to the United States
now our country is kidnapped by the US dollar, which can not be raised or thrown away. Selling US Treasury bonds is obviously a double-edged sword for China, which will hurt both people and ourselves. China's massive selling of US dollar assets and US Treasury bonds will aggravate the weakness of the US dollar and eventually force the US Federal Reserve to raise interest rates, making the US economic recovery in vain. However, the United States is likely to raise the import tariff of Chinese goods by a large margin, resulting in the exclusion of Chinese goods from entering the United States, which will do great harm to China's economy, because the United States is China's largest export market, and at present China can not find a market that can replace the United States. Once exports are blocked, Chinese enterprises close down and workers lose their jobs, economic problems will turn into political problems. Therefore, selling U.S. Treasury bonds, a financial nuclear bomb, is tantamount to dying together. The United States takes advantage of China's weakness to force RMB appreciation.
8. The potential benefits of RMB appreciation are: to repay foreign debts, to import trade, to curb inflation, to China's overseas investment, and to move towards regional currency and international currency<
the negative impact of RMB appreciation on China's economy:
first, weaken the competitiveness of Chinese goods in the international market. The appreciation of RMB will inevitably affect the export of Chinese procts and their competitiveness in the international market< Second, the number of foreign investment in China will decrease. China's development experience has proved that the lack of foreign investment, or a sharp decline in foreign investment, will be very detrimental to China's sustainable development. Although RMB appreciation is beneficial to foreign entrepreneurs who have invested or have capital in China, because their assets will increase in value, it will make entrepreneurs who are going to invest in China stagnate. Therefore, in the long run, it is not concive to China's economic development< Thirdly, it is not concive to the development of China's domestic tourism. Once the RMB has a substantial appreciation, it will have a negative effect on the development of China's domestic tourism. Of course, the appreciation of RMB will also promote Chinese people to travel abroad, but the resulting loss of foreign exchange is also unfavorable to China< Fourth, China's huge foreign exchange reserves will shrink by a large margin. China's foreign exchange reserves are as high as US $2 trillion, ranking first in the world. China's foreign exchange reserves are mainly in US dollars. As long as RMB appreciation, a large number of US dollar reserves will shrink
fifth, China's economy is likely to get out of control. Maintaining the stability of currency exchange rate is very important for the sustainable development of a country's economy. China's financial and monetary system is not perfect. Once the currency exchange rate is greatly adjusted, the possibility of losing control is very high
Japan is a good example. The great adjustment of the yen exchange rate has led the world's second largest economy into the abyss of economic chaos. Since the collapse of the bubble economy in 1991, the Japanese economy has never been able to recover.
now let's respond to what is known as "RMB appreciation is good for curbing inflation". In the global village, with the appreciation of RMB, we should enjoy more cheap and high-quality goods, just like in the Clinton era when the US dollar was strong, things were very cheap and people's living standard was high; The same is true in Japan. When the exchange rate of Japanese yen is greatly adjusted, Japanese yen is very easy to use. Japan has taken the opportunity to purchase a large number of overseas assets. Now, on the accounting day every year, several trillion US dollars are remitted back to Japan (people engaged in foreign exchange are very fond of this wave of market). Now Japan is stagnant at home, but its overseas income is also amazing. But why does RMB appreciate, but we feel that it is becoming more and more difficult to use? The value of money depends on its purchasing power parity. In fact, the purchasing power of RMB is declining, that is to say, RMB is actually devaluing in China!!! This is unique in the world!
the negative impact of RMB appreciation on China's economy:
first, weaken the competitiveness of Chinese goods in the international market. The appreciation of RMB will inevitably affect the export of Chinese procts and their competitiveness in the international market< Second, the number of foreign investment in China will decrease. China's development experience has proved that the lack of foreign investment, or a sharp decline in foreign investment, will be very detrimental to China's sustainable development. Although RMB appreciation is beneficial to foreign entrepreneurs who have invested or have capital in China, because their assets will increase in value, it will make entrepreneurs who are going to invest in China stagnate. Therefore, in the long run, it is not concive to China's economic development< Thirdly, it is not concive to the development of China's domestic tourism. Once the RMB has a substantial appreciation, it will have a negative effect on the development of China's domestic tourism. Of course, the appreciation of RMB will also promote Chinese people to travel abroad, but the resulting loss of foreign exchange is also unfavorable to China< Fourth, China's huge foreign exchange reserves will shrink by a large margin. China's foreign exchange reserves are as high as US $2 trillion, ranking first in the world. China's foreign exchange reserves are mainly in US dollars. As long as RMB appreciation, a large number of US dollar reserves will shrink
fifth, China's economy is likely to get out of control. Maintaining the stability of currency exchange rate is very important for the sustainable development of a country's economy. China's financial and monetary system is not perfect. Once the currency exchange rate is greatly adjusted, the possibility of losing control is very high
Japan is a good example. The great adjustment of the yen exchange rate has led the world's second largest economy into the abyss of economic chaos. Since the collapse of the bubble economy in 1991, the Japanese economy has never been able to recover.
now let's respond to what is known as "RMB appreciation is good for curbing inflation". In the global village, with the appreciation of RMB, we should enjoy more cheap and high-quality goods, just like in the Clinton era when the US dollar was strong, things were very cheap and people's living standard was high; The same is true in Japan. When the exchange rate of Japanese yen is greatly adjusted, Japanese yen is very easy to use. Japan has taken the opportunity to purchase a large number of overseas assets. Now, on the accounting day every year, several trillion US dollars are remitted back to Japan (people engaged in foreign exchange are very fond of this wave of market). Now Japan is stagnant at home, but its overseas income is also amazing. But why does RMB appreciate, but we feel that it is becoming more and more difficult to use? The value of money depends on its purchasing power parity. In fact, the purchasing power of RMB is declining, that is to say, RMB is actually devaluing in China!!! This is unique in the world!
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