It is very possible to break 7, and a lower exchange rate means a downward adjustment of the RMB. What I want to say is that ordinary people do not need to panic or make a fuss about this.

I would say that in the context of the Federal Reserve’s continued interest rate hikes, the European Union, Japan and some important economies that are highly dependent on the U.S. dollar have to be forced to raise interest rates together, but our central bank is doing the opposite. Following the right path and choosing to continue to cut interest rates is a strong demonstration that the RMB has embarked on an independent and strong path. Everyone should applaud our country!

Personally, I think there is no need to be too entangled in the "Seven Breaks", and there is no so-called "safety warning line". China's economy will be good in the long run.

This kind of integer mark exists in the securities and futures markets, just like the 3,000-point mark on the Shanghai Stock Exchange. This is a psychological threshold. Of course, breaking seven may affect market expectations, because some investors will set the trigger price of transactions at an integer mark, so when this point breaks through, it will trigger some transactions. This is what we often see after breaking seven. A period of accelerated depreciation. People who don’t understand may be frightened by this period of accelerated depreciation. But fundamentally speaking, this has no practical significance, nor does it have any so-called "safety warning line" meaning.

It is normal for the RMB to fluctuate in both directions in the short term. It is easy to break through 7, and it is also easy to fall back to less than 7. What we need to pay attention to is actually the reasons behind exchange rate fluctuations.

In the short term, the Fed’s interest rate hikes will cause global capital to allocate U.S. dollar assets. Therefore, as the U.S. dollar index strengthens, all currencies will depreciate against the U.S. dollar. Especially in this round of epic interest rate hikes, the currencies of various countries will depreciate against the U.S. dollar. It is normal for the U.S. dollar to depreciate more than before. However, in the medium and long term, the risk of stagflation in the U.S. economy is very high. Although China is currently affected by the epidemic and is under great pressure to stabilize growth in the short term, we do not have inflation, and our medium and long-term positive trend has not changed. The international competitiveness of our industry It is constantly strengthening, which is the hard core foundation supporting the RMB exchange rate.

So import companies may be more affected, but this is temporary. We should concentrate on doing our own things well.