Is the RMB exchange rate overvalued or undervalued?

The RMB has dropped from 6.5 to 7.3, and has been hovering at 7.3 without going down?

Do you believe there is no strong intervention?

But look at the purchasing power of one US dollar and the purchasing power of one RMB in China?

Things in the United States are very expensive, and prices in China are cheap.

Now, there is no other country that can compare prices with China except Japan.

But looking at the capital return rate, the risk-free interest rate of one US dollar is 5.5%, and that in China is 2%.

In the past three years, buying US stocks, US houses, and Bitcoin with the US dollar has made money.

Buying domestic assets is losing money...

Funds still follow the return on capital, and purchasing power parity is only a branch line, not the main line.

Foreign exchange reserves are still very strong, so the ability to intervene is strong.

In the 1997 Southeast Asian financial crisis, capital calculated how many chips Hong Kong and South Korea had in their hands, and naturally they could blast them in a targeted manner.

But the depth of China cannot be calculated. Even if you calculate everything correctly, a fluctuation can still make you blow up your position.

The exchange rate will also be within control. It will proceed in an orderly manner. #币安合约锦标赛 #美国PCE数据将公布 #Meme板块普涨 #以太坊ETF批准预期 #Mt.Gox将启动偿还计划 $BTC $ETH $BNB