Text丨Flavor Society
Editor丨Flavor Society
Preface
Topic 1: Fluctuations in the yen exchange rate
Topic 2: RMB internationalization
With the development of globalization, the economic ties between countries are becoming increasingly close, and currencies play a vital role in this global economic system. There is an exchange rate relationship between the currencies of different countries, and the stability of this relationship is directly related to the economic development and international trade of each country.
Recently, there have been some interesting views surrounding the exchange rate fluctuations of the yen and the yuan, and some people believe that the sharp fluctuations of the yen have actually become a force for the "harvest" of the yuan. In this context, China's exchange rate policy has once again become the focus of public opinion.
1. The fluctuation of currency exchange rates is the result of a combination of factors
When talking about exchange rate fluctuations, we first need to understand that currency exchange rate fluctuations cannot be affected by a single factor. Rather, it is often the result of a combination of factors.
First of all, economic fundamentals are one of the important factors that determine the long-term trend of the exchange rate. The health of a country's economy will directly affect the exchange rate level of its currency.
Second, policy adjustments will also have a certain impact on the exchange rate. For example, if a country announces an over-issuance of currency, or adjusts the level of interest rates, these operations may exert a certain degree of depreciation pressure on its currency.
Finally, market speculation and sentiment swings can also have a certain short-term impact on the exchange rate. When there is some kind of hot event in the market, or when investors have negative emotions about the economic outlook of a country, it can lead to large short-term fluctuations in the country's currency.
It can be seen that the fluctuation of currency exchange rates is affected by a variety of factors, and the logic behind them is extremely complex. Therefore, when we talk about exchange rate fluctuations, we also need to consider a variety of factors comprehensively to avoid oversimplification.
Second, the sharp fluctuation of the yen exchange rate has caused heated discussions in the market
Recently, one of the most active exchange rates in the market is the yen. In recent times, the yen has experienced sharp fluctuations against the dollar, and this fluctuation has been accompanied by a certain rebound.
This sharp fluctuation not only surprised market investors, but also sparked speculation about the Japanese economy. Some analysts believe that the sharp fluctuation of the yen exchange rate may be directly related to the operation of the Bank of Japan.
In the face of this volatility, what will the Bank of Japan do? Will they intervene in the market to maintain the stability of the yen's exchange rate?
In this regard, speculation in the market is also endless. Some people believe that the Bank of Japan may succeed in stabilizing the yen exchange rate if it uses a lot of money, but this also means that to a certain extent, they are violating the principles of the free market.
If this happens, the balance mechanism of the market may be disrupted to a certain extent, and it may also have a certain negative impact on the Japanese economy.
3. China has introduced measures to maintain the stability of the RMB exchange rate
At the same time, with the sharp fluctuation of the yen exchange rate, the RMB exchange rate has also become the object of heated discussion in the market. However, compared with Japan's drastic operation, China's response has been relatively more restrained.
In the face of the problem of exchange rate fluctuations, China did not choose the way of quick success, on the contrary, they paid more attention to maintaining the stability of the exchange rate through market-oriented methods.
It can be said that in this wave of operations, China's approach can be called "responsible". They are soberly aware that the current international financial market is still full of uncertainties, and various challenges and risks are also menacing.
Under such circumstances, if all countries can manipulate the exchange rate arbitrarily, the stability of the global economy will be greatly threatened.
To this end, China has introduced a series of policy measures, including adjusting its foreign exchange policy and strengthening the management of capital flows, in an effort to fundamentally stabilize the exchange rate level of the renminbi.
It can be said that the market has also given a high degree of recognition to such an operation. Under China's strong measures, the RMB exchange rate has remained relatively stable, and its performance among various currencies is very eye-catching.
Fourth, how ruthless is China's shot, and the yen has become a "booster"?
When it comes to China's operations, there are some interesting points in the market, with some arguing that China's aggressiveness is as high as 300% that of Japan.
The sharp fluctuations of the yen have also become a kind of booster for China's "harvest". How should we view this view?
As for China's operation, it is not a simple and crude "intervention", but a targeted and various policy adjustments, which are full of wisdom and strategy.
They are fully aware that the global economy is still in a period of adjustment, with all kinds of chaos occurring one after another, and the uncertainties in the financial market are also increasing.
In this context, if there is no certain policy guarantee, countries will manipulate the exchange rate at will, which may have a negative impact on the smooth operation of the global economy.
Therefore, China's actions are also demonstrated in the overall situation of maintaining global economic stability, and their actions are also highly recognized by the current international rules and practices.
As for the issue of the yen becoming a "booster", we should also treat it rationally. Although the fluctuation of the yen may have a certain impact on other currencies, this impact is not one-way and cannot be unlimited.
Conversely, the level of exchange rates of other currencies will also exert some negative pressure on the yen.
Therefore, when operating monetary policy, all countries should have more communication and coordination, and while safeguarding their own interests, they should also take into account the actual situation of other countries, so as to jointly maintain a stable, fair and inclusive international economic system.
epilogue
From the above discussion, we can clearly see that in the current global economic situation, one of the challenges facing monetary policy, especially exchange rate policy, comes from the general trade imbalance between countries.