Is RMB appreciation better or devaluation better?

The so-called appreciation of RMB refers to the rise of the exchange rate between RMB and other countries or regions. That is, the same amount of RMB can be converted to more currencies in other countries or regions. Behind the currency phenomenon are economic problems, which means that more products from other countries can be bought with the same amount of RMB.

Therefore, for imports, RMB appreciation can enhance the purchasing power of RMB. For importers and consumers, it should be a good thing for their immediate interests.

However, for export enterprises, the appreciation of RMB means that the cost or price of products priced in RMB is increased, and the international competitiveness is reduced, which is unfavorable to export.

In the case of RMB devaluation, if the RMB depreciates internally, it means the decline of purchasing power for ordinary people, and there will be less things that the same money can buy; too fast depreciation is also a manifestation of inflation, which is very unfavorable for people who are accustomed to saving.

Therefore, whether it is better to appreciate or devalue depends on different positions and interests.

However, the economy is an ecosystem, which is interconnected and interacted with each other. If an enterprise is eliminated by the market due to competition problems, the workers lose their jobs and have no stable income or foreign exchange, no matter how much the RMB is worth, it will be of little significance. A country must first develop its economy, create more enterprise competitiveness, and enhance the international status of RMB products.

Under the condition of market economy, exchange rate is often the result of market competition, balance and adjustment. It is also the embodiment of national competitiveness.

The conclusion is that the appreciation and depreciation of RMB have both advantages and disadvantages. It is better to maintain a relatively stable currency value.