Devaluation helps exports. In the context of the financial crisis, many domestic small export enterprises have greatly reduced their orders, and before the financial crisis, they suffered RMB appreciation. Let the RMB depreciate now, at least for these export enterprises, and it will not die too much at once. Ensuring the immortality of enterprises and ensuring employment can also be regarded as promoting domestic demand.

The general situation is inflation, rising prices and RMB depreciation. RMB depreciation can be divided into internal depreciation and international exchange rate depreciation against the US dollar.

Currency value is manifested in the ability to exchange with foreign currency, which is embodied in the change of exchange rate. At this time, currency devaluation means that the ability of a unit's domestic currency to exchange foreign currency decreases, while the foreign exchange rate of its domestic currency decreases.

Exchange rate instruments are often used to adjust a country's balance of payments imbalance. Governments all want to use exchange rate tools to restore unbalanced international payments, especially when a country's international payments are in deficit, using the strategy of depreciation of local currency. It is hoped that through the devaluation of the local currency, on the one hand, the foreign currency prices of domestic export commodities will be reduced, and the price competitiveness of domestic export commodities in the international market will be enhanced, thus promoting exports and increasing exports.

The devaluation of RMB means that the purchasing power of RMB in China is reduced. This means that the RMB is becoming less and less valuable at home. Price stability is one of the four macroeconomic goals.

This is related to the amount of funds invested by China. By the first quarter of 20 13, the broad money (M2) had exceeded 100 billion yuan, and at the beginning of 2002 it was1600 million yuan, and 10 has increased by more than five times. The ratio of China's monetary aggregate to GDP has exceeded 200%, and China's economic aggregate ranks second in the world, while its monetary input ranks first in the world.

There is a corresponding relationship between the quantity of money and the overall price level. However, in practice, after the currency is over-issued, not all the commodities on the market will increase in price at the same time and in the same proportion, but some commodities will increase in price fiercely, some will rise relatively steadily, and some will show a downward trend.