In addition, there are the following effects:
1. When there is a large-scale capital outflow, it is bound to be accompanied by selling domestic assets, which will lead to the decline of domestic assets, such as selling real estate and stocks.
2. When the stock market falls, the depreciation of RMB directly benefits A shares, and some funds are withdrawn from the stock market to invest in US dollars, thus realizing asset appreciation, affecting the liquidity of the stock market, causing the stock price to fall, and at the same time hitting investor confidence.
On the other hand, the depreciation of RMB will increase the market's expectation of domestic interest rate hike to a certain extent, which is also a big negative for the stock market.
Studying abroad and traveling abroad cost more.
The depreciation of RMB means that you have to pay more RMB for the same study abroad expenses.
The same is true for overseas tourists, who need more RMB.
Extended information:
USDX is an index that comprehensively reflects the exchange rate of the US dollar in the international foreign exchange market and is used to measure the exchange rate of the US dollar against a basket of currencies.
It measures the strength of the US dollar by calculating the comprehensive rate of change between the US dollar and a selected basket of currencies, thus indirectly reflecting the changes in US export competitiveness and import costs.
The dollar index is not from Chicago Board of Trade (CBOT) or Chicago Mercantile Exchange (CME), but from new york Cotton Exchange (NYCE).
New york Cotton Exchange was founded in 1870, which was originally composed of a group of cotton traders and middlemen. It is the oldest commodity exchange in new york and the most important cotton futures and options exchange in the world.
1985, new york cotton exchange established the financial department, officially entered the global financial commodity market, and launched the US dollar index futures for the first time.
The US dollar index was originally published by new york Cotton Exchange (NYCE).
From 65438 to 0998, new york Cotton Exchange and Coffee Sugar Cocoa Exchange merged to form NYBOT. In September 2006, the New York Futures Exchange was merged into the American Intercontinental Exchange (ICE) and became its subordinate department.
Dollar index futures are traded on the American Intercontinental Exchange. The exchange is responsible for publishing the real-time data of the US dollar index and the futures price of the US dollar index.
The real-time data of the US dollar index (that is, the spot price corresponding to the ice US dollar index futures) is updated by Reuters every 15 seconds according to the real-time exchange rates of the constituent currencies of the US dollar index.
When calculating, the average value of the highest buying price and selling price of this currency calculated by Reuters is adopted.
The calculation results are transmitted to the American Intercontinental Exchange and then distributed to all data providers.