The devaluation of RMB has two effects: the positive: the price advantage of export products, the enhanced competitiveness, the rising profit rate of enterprises, the devaluation of RMB raising people's expectations of inflation and stimulating domestic consumption; Negative: A large amount of international capital betting on RMB appreciation flows out of China in the short term, which further aggravates the international capital outflow, increases the financing cost of domestic enterprises and further worsens the financing situation of SMEs. Next, Bian Xiao will introduce the impact of RMB depreciation.

1. With the decrease of imports, the profits of import-oriented enterprises decrease. When importing goods, you must convert RMB into foreign currencies such as bank dollars, and then buy goods from abroad.

After the devaluation of the RMB, the same RMB was exchanged for less dollars, less goods were purchased, the import cost increased, and the competitiveness of imported goods decreased.

2. With the increase of exports, the profits of export-oriented enterprises increase: after the depreciation of RMB, the US dollars received by export goods can be returned from the bank to increase profits.

Therefore, the essence of the continuous depreciation of RMB exchange rate is to subsidize export enterprises and help exports, which is conducive to protecting low-end industries and backward production capacity, but it will increase industrial pollution and destroy the ecological environment, which is not conducive to the adjustment and upgrading of the national industrial structure.

3. Increase employment: After the devaluation of RMB, due to the decrease of imports, the competition in the domestic sales market decreased, the sales of domestic commodities increased, the number of jobs increased, the profits of export enterprises increased, and employment opportunities increased.

4. With the increase of import cost, the prices of production and living consumer goods rise: the RMB exchange rate falls, and the domestic prices of imported goods rise.

Every year, the country needs to import a large number of production and consumer goods, such as oil, iron ore, wood, soybeans, food and so on. , settled in US dollars. The renminbi continues to depreciate, the import prices of these consumer goods rise, and the overall cost of the industrial chain increases.

5. For the stock market, the impact of local currency depreciation on the stock market is more complicated. Depreciation of the local currency will enhance the competitiveness of domestic products, especially export enterprises, while enterprises that rely on imports will increase costs and lose profits, which will adversely affect small and medium-sized import enterprises, and the company's net profit will also be reduced accordingly, and the stock price will also be affected.

6. Prices of gold and international commodities may rise: at present, gold and international commodities are denominated in US dollars. The depreciation of the renminbi is equal to the rise of the dollar, that is, the price of gold and international commodities has risen. Therefore, it is necessary to hold and buy coins such as gold when the local currency depreciates.