Depreciation Of The Dollar Showed Five Signals Rmb Appreciation Pressure - A Falling Dollar, The

Another dollar devaluation affects the nerves of global capital markets

. The expert analysis of the release of the five dollar signal, which has the Chinese yuan appreciation pressures.

"Weak dollar" is threatening global stability in the market?

Depreciation of the dollar caused by the global market turmoil, especially for export-oriented economies will be a severe blow.

Some market participants worry that a weak dollar policy would threaten the multiple dimensions of global Financial And economic stability. If the dollar caused market panic, still fragile global financial market instability and even crises will happen again; continued depreciation of the dollar prices of commodities will increase the pressure, and enable funds to the stock market, property market focus, increased inflation and asset bubbles; Exchange market volatility increased trade protectionism will affect the pace of global recovery.

Dollar "safe-haven" indicates that the global recovery is weakening?

The people of the dollar's ups and downs ups and downs and the evolution of the financial crisis situation and is closely related to the degree of global economic recovery.

Xu Gang, Managing Director of CITIC Securities, the current relationship between the dollar and the world economy can be summarized as follows: U.S. dollar up, the world economic contraction; dollar fell, the currency increase, expansion into the world economy. The current depreciation of the dollar, not only reflects the dollar "hedging," the weakening of global economic recovery is also a sign.

Bank of Communications Research, said financial analyst Qiu Gao Qing, when the recent signs of economic recovery in major economies has become more evident when, on the economic recovery of confidence in the dollar reduces the appeal as a hedge, the dollar index also showed a U-turn to under Track Trace.

"Import inflation" will accelerate the arrival of?

Depreciation of the dollar led to an international market, rising commodity prices.

Chief economist with Bank of Communications, Ping said that the weaker dollar will boost U.S. exports, help the U.S. economy rebound and thus promote the recovery of the world economy; but on the other hand, most of the international dollar-denominated commodities, A weaker dollar will lead to rising international commodity prices led to imported inflation, but also the world economy will adversely affect the recovery.

Global "tightening cycle" will not start?

Boost the current round of dollar depreciation is a major factor in Australia's central bank on Oct. 6 hike from 0.25 to 3.25 percent. There is market speculation that Australia's interest rate move will cause other countries will follow, so the world's major economies, monetary policy tightening cycle to the next round.

Galaxy Securities chief economist Zuo Xiaolei that the Australian central bank rate hikes sent an important signal that inflation expectations are formed. Australian central bank rate hike, the first out of economic stimulus, indicating that it has entered a substantive stage of the prevention of inflation.

By the World Academy of Social Sciences, Deputy Director Zhang international financial analysis, Australian interest rates will not cause any pressure on other countries.

Major disadvantages of China are big profits?

Concerned analysis of the direct dollar impact on China focused on two aspects: First, export, and second, foreign exchange reserves safe. Exports, the dollar depreciation is conducive to the formation of Chinese products exported to non-American countries the price advantage. However, a weak U.S. dollar and international trade protectionism, but also give rise to tremendous pressure on the yuan. Renminbi appreciation will increase

export-oriented manufacturing sector in China dilemma. China Institute of Contemporary International Relations of the United States researcher Qian Liwei, holding huge dollar reserves and U.S. Treasuries great impact in China, will lead directly to the real value of these assets shrink.

by: gaga

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