How To Invest In RMB Devaluation?

< p > since February this year, the a href= "http://www.91se91.com" > RMB > /a > exchange rate has changed for nearly 10 years. The trend has suddenly reversed. As of March 19th, the RMB has fallen below the US $6.20 to the US $1 mark, which will almost consume the whole year's gains.

The continued depreciation of the renminbi means that you need to spend more money to convert into US dollars.

In March 15th, the people's Bank of China announced that the daily trading volume of the RMB against the US dollar would be doubled, and the floating rate would be expanded from 1% to 2%.

In the future, will the yuan continue to depreciate? What impact will this exchange rate fluctuation that has little connection with the life of ordinary people? What will it do to our lives? How should the financial investors respond? < /p >

< p > < strong > $ten thousand per exchange < /strong > /p >

< p > < strong > spending more than one thousand yuan RMB < /strong > /p >

< p > since the reform of RMB exchange rate was launched in July 21, 2005, the RMB has continued to appreciate in less than 10 years, and from the 8 era to the 6 era.

At the end of 2013, the expectation of RMB breaking six was stronger.

However, in 2014, the central parity of RMB dropped rapidly from 6.09 yuan, until March 19th, it has dropped to 6.19 yuan, and the depreciation rate has exceeded 2%.

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The most direct impact of the depreciation of RMB P on people's lives is that the exchange of US dollars needs to spend more Renminbi.

In exchange for $10 thousand, for example, in December 31st last year, the central parity of RMB against the US dollar was 6.0969, and the exchange rate of US $10 thousand was only 60969 yuan.

Up to now, it needs 61990 yuan to exchange 10 thousand dollars, which is 1021 yuan more than the former.

Whether traveling abroad, studying abroad or shopping, as long as it involves overseas consumption, the renminbi in your hands is not as valuable as before.

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< p > < strong > there is no need to change US dollar > /strong > /p >

< p > < strong > can pay attention to foreign currency financial products < /strong > /p >

< p > in the face of the RMB's "ups and down", do financial managers need to convert all the RMB into US dollars to reduce exchange rate losses? Bank financial analysts believe that the annual interest rate of US dollar deposits is only 0.75%, which is much lower than the deposit rate of RMB. What's more, with the accelerated pace of interest rate marketization, every major a href= "http://www.91se91.com/news/index_c.asp" > Bank < /a > has all kinds of preferential policies for deposits. Therefore, if the financial planner has no plans to travel abroad or study abroad, it is not wise to hold a dollar in the country.

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< p > with the depreciation of RMB, the attention of foreign currency financial products has been increasing.

According to the statistics of silver rate network, the total amount of foreign currency products issued by commercial banks in 2013 is 1702, and the annual yield of 1300 foreign currency financial products is less than 3%.

In 2014, the yield of foreign currency financial products rose rapidly from less than 3% to around 5%.

Bank financial analysts believe that the yield of foreign currency financial products is mainly affected by the trend of foreign currency interest rates.

Since the beginning of this year, with the gradual withdrawal of the Federal Reserve's loose monetary policy, the US dollar interest rate has risen, and the expectation of continued rising in the future is stronger, so the US dollar product revenue has also risen significantly.

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< p > < strong > may continue to depreciate in the near future < /strong > < /p >.

< p > < strong > foreign banks have lowered their expectations < /strong > /p >

< p > the people's Bank of China has expanded the daily trading space of RMB to us dollar, which has been interpreted as an effort to pform the market oriented exchange rate system and relax capital account restrictions under the current deepening of economic reform.

Singapore's Dahua bank's economic and fiscal research department recently released a report that the PBC's flexible trend toward RMB's two-way volatility is obvious, which may mean that the stable appreciation of the currency in the past few years may not happen again in the near future. It is not surprising that the paction area will be expanded again this year.

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At the same time, the report thinks that despite the favorable view of the RMB's trend in the medium and long term, the road of development may be tortuous, that is, two-way volatility will become a norm. P

In the next few months, it is expected that the yuan will still be under pressure from the US dollar and its enthusiasm for RMB will be weakened.

Although the RMB may depreciate in the near future, taking into account China's strong foreign exchange position net value, increasing a href= "http://www.91se91.com" > Import /a demand and currency internationalization pursuit, the risk balance in the medium and long term is likely to be enhanced.

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