What Should We Do To Resist The Depreciation Of RMB?

The Federal Reserve raised interest rates by 25 basis points this Wednesday evening.

This will bring devaluation pressure to other currencies in the world, and the renminbi is no exception.

In recent months, the exchange rate between the RMB and the US dollar has depreciated.

From 1:6.215 in early January to 1:6.4826 on Friday December 18th, the yuan depreciated by about 4.3% this year.

But will the renminbi depreciate greatly and depreciate to 1:7 or 1:8.28?

Because China's GDP growth is still over 6.5%, and the purchasing power of the renminbi is strong, plus China.

It has been in surplus and foreign exchange reserves are as high as 3 trillion and 500 billion US dollars.

In fact, the yuan will appreciate more than 2% of the total foreign currency this year.

Two, will the depreciation of the RMB against the US dollar seriously affect people's lives?

First, we should pay attention to the depreciation of the exchange rate between the RMB and the US dollar. It is not the depreciation of the RMB against the world basket of currencies, nor the depreciation of all domestic commodities in China.

If it is only the former, it will have a greater impact on traveling abroad, studying abroad at its own expense, and investing in immigrants.

But these things are not urgent for the 1 billion 360 million people, especially the latter two, which are totally unnecessary.

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If the renminbi depreciates to all domestic commodities, the impact will be great, that is, inflation.

Moderate and severe inflation is a great blow to the people.

But in recent years, inflation in China has been very mild, even deflation.

More than 96% of the products are overcapacity, and products from all walks of life can not be sold or even fall in price.

The grain that has the greatest impact on prices has been stable since the bumper harvest of successive years.

In addition, the Chinese government

They are highly vigilant and remain strongly resistant.

Three, should we convert all Renminbi into US dollars or other foreign currencies?

Each ID card can be exchanged for 50 thousand dollars.

A few days ago, it was found that the B shares in the morning were 10% cheaper than the A shares (the City Investment Holdings), that is, to change the US $100 thousand and buy the B shares of Yang Chen, which earned US $50 thousand yesterday.

But can it be changed?

There is a foreign exchange reserve of 3 trillion and 500 billion dollars in the country, and it is impossible for everyone to exchange unlimited quantities, but there are still enough to exchange $50 thousand for each person.

But besides, what do you want to change? Euro, ruble, Japanese yen, pesos and Hong Kong dollar? I dare not.

For two years, the euro and rouble have not only depreciated against the US dollar, but also depreciated the renminbi.

It should be said that the renminbi is the second strong currency besides the US dollar.

Four, how to deal with the depreciation of the RMB against the US dollar?

In response to the depreciation of the renminbi against the US dollar or even to domestic commodities, we have the following suggestions:

1, use your ID card to change some US dollars; when B shares fall, buy B shares.

2, buy some gold, pay attention not to buy gold necklace, gold and other gold art works, buy some of the most practical gold bars.

3, buy some reliable trust products, the yield of 8-9%.

4, buy some appreciation potential of real estate, such as Changsha, Nanning, Zhuhai west area and so on, some two or three or four line cities' houses are not limited to purchase, the price is not high, should be able to buy.

5, antiques, works of art, to pedestrians to point out, otherwise easy to deceive.

6, with a good attitude, a cool head and wisdom, participate in the operation of the stock market, buy some good stocks, and raise the total market capitalization, far exceeding the depreciation rate of RMB against the US dollar.

This is actually the best practice and the easiest way to lose money. So we must see the general trend.