I have figured out that Huawei has become China's largest beef importer.

After the US raised interest rates in 2022, it sucked a large amount of US dollars from the world, causing many small and medium-sized countries to have no US dollar foreign exchange and no RMB, and could only pay Huawei in their own country's currency.

In order to avoid exchange rate losses, Huawei used these currencies to buy a large amount of agricultural products locally, and then brought them back to China for sale.

Among them, the focus of beef is Argentina. After the new president Milley took office, the country was extremely short of foreign exchange. There was no US dollar or RMB, and China also suspended the currency swap agreement with Argentina in 2023, which resulted in them having to pay Huawei in pesos.

Huawei was also afraid of the exchange rate of the peso, so it took advantage of Argentina's price reduction to sell beef to earn foreign exchange, bought a large amount of Argentine beef and brought it back to China for sale. Unexpectedly, it became China's largest beef importer.

Why is capital outflowing?

If you exchange 50,000 USD in foreign exchange in 2022, your money will increase from 6.3 to 7.26, an appreciation of 15%. Add 5.5 USD time deposit, and the conservative appreciation will exceed 20%. With the release of money, the RMB may continue to depreciate. Low-risk foreign exchange arbitrage is really awesome. You can make a lot of money by shorting RMB. ​#现货以太坊ETF获美SEC批准 #美国4月核心PCE指标显示通胀放缓 #非农就业人数高于预期 #美联储何时降息？ #TopCoinsJune2024 $BTC $ETH $BNB