China holds nearly $2 trillion in assets, and the appreciation of the dollar will certainly bring the appreciation of American assets to China. If the RMB is counted from 6: 1 against the US dollar, and if the RMB depreciates to 7.2 against the US dollar, it depreciates by 20%, and 20% of the 2 trillion US dollars is 400 billion US dollars. China's exchange rate book losses caused by RMB appreciation in the past few years have basically come back from the appreciation of the US dollar.
2. China's exports will increase, which will promote macroeconomic growth.
The decline in exchange rate and the increase in exports will inevitably stimulate macroeconomic growth, which is of course good for the macro economy.
3. China can take advantage of some national crises to copy relevant national assets, and at the same time, it can establish a stronger relationship with these countries politically.
If the Fed raises interest rates quickly, some countries are likely to have an economic crisis. At this time, China rushed to rescue the American institutions before bargain hunting. The countries concerned not only thanked China, but also China could get cheap assets. Of course, we can also strengthen our relations with these countries politically.
4. After the US dollar raises interest rates, it will enter the depreciation cycle of interest rate reduction. At this time, the China market will become a delicious cake.
If the dollar finally adopts the strategy of raising interest rates quickly, it will enter the cycle of depreciating interest rates within one to two years. By then, the RMB will appreciate against the US dollar, RMB assets will become a hot potato, and a large amount of capital will flow into China.
Extended data:
As the central bank of the United States, it performs the functions of the People's Bank of China, commonly known as "Mother Yang". The range of interest rate increase is adjusted by the "federal funds rate", that is, the interest rate in the American interbank lending market, and the most important one is the overnight lending rate. According to the regulations, the member banks of the Federal Reserve must deposit a certain percentage of cash into the Federal Reserve as a reserve within two weeks with Wednesday as the deadline. Due to the frequent changes in the deposit balance of member banks, reserves often appear surplus or deficiency. When the reserve is insufficient, banks can borrow funds from other banks to make up the reserve. The way is to transfer money to each other through the Federal Reserve account, and the payment of interest will be settled in summary within the agreed time or at any time with the principal.