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On April 16, a striking financial phenomenon occurred:
The exchange rate of the renminbi against the dollar fell below the psychological barrier of 7.28.
At the same time, China's gross domestic product (GDP) growth unexpectedly jumped to 5.3%, far exceeding market expectations.
This contrast makes people think: in the tide of the global economy, where will the victory or defeat of the currency defense war go?
Behind this seemingly contradictory economic data lies complex global and domestic economic dynamics.
From a global perspective, U.S. monetary policy has always had a significant impact on the RMB exchange rate.
At the beginning of 2024, the Fed continued its pace of interest rate hikes, and the dollar index remained high as a result;
This has directly increased the pressure on emerging market currencies, especially the renminbi, to depreciate.
However, in the face of such pressures, China did not choose to engage in drastic monetary intervention, but maintained stable economic growth through the flexible use of monetary policy and other macroeconomic control tools.
Let's take a more concrete look at how cities are responding to this challenge.
In Beijing, the government has increased investment in high-tech and clean energy sectors, which has not only stimulated employment, but also promoted industrial upgrading and transformation.
Shanghai has taken advantage of its financial center to attract foreign investment, stabilize the stock and housing markets, and ensure economic vitality through open policies and preferential measures.
Shenzhen and Guangzhou, as large manufacturing and export cities, in the context of the depreciation of the yuan;
Although facing the pressure of rising export costs, it has also strengthened its international competitiveness by increasing the added value of products and transforming and upgrading.
For example, some high-tech enterprises in Shenzhen have opened up more international markets through innovation and achieved contrarian growth in exports.
Merchants and manufacturers in these cities have promoted local products to national and global markets through online platforms, promoting the diversification of local economies.
In this currency defense war, although the renminbi is under pressure to depreciate;
However, through internal economic restructuring and external active participation in global market competition, China has demonstrated its economic resilience and ability to dynamically balance.
The United States, while maintaining the dollar's position through strong monetary policy, must also be wary of the challenges posed by internal debt accumulation and changes in the global economic environment.
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-ENDS-
Text: Thousand Trees
Audit|Ancient Oasis, Thousand Trees