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Exchange Rate Mechanism

{}Posted in2023/2/24 19:31:37 | 5Browse

ExchangeRateMechanismWhat is Exchange Rate Mechanism The rebatesforexbroker fxrebatecentral bestforexrebatecompany is a very important issue forexrebatecommission a countrys economic development, but also an important means of economic regulation, reflecting the external value of the countrys currency best forex rebate company economic strength, but also directly affects a countrys cashback forex trade, capital flows and balance of payments exchange rate mechanism In the short term, an effective exchange rate mechanism should not only adapt to the needs of the national trade and financial markets, but also focus on protecting the national currency from shocks and making timely adjustments and continuous improvements to the exchange rate; in the long term, the exchange rate mechanism should be adjusted in line with the changes in the international economic and financial and domestic economic and financial conditions. The European Exchange Rate Mechanism (EuropeanExchangeRateMechanism, ERM II) was created in 1979 to limit the exchange rate fluctuations of the currencies of the EU member states ERM sets a fixed central rate for the exchange rates of member states currencies and allows the exchange rate to fluctuate within a certain range above and below the central rate. The exchange rate fluctuates within a certain range up and down According to the regulations, the new EU member states should include their currencies in the ERM-2 system that allows the exchange rate to fluctuate within a range of 15% up and down from the central exchange rate before joining the euro area, for two years to improve the RMB exchange rate formation mechanism measures I. The need for exchange rate mechanism reform II: Further liberalization of foreign exchange demand reform, break the management mode of foreign exchange resources concentrated in the country, increase the income of holding foreign exchange.  Further promote the willingness of enterprises to settle and sell foreign exchange under the current account, enterprises open foreign exchange accounts management to banks, 80% of income + 50% of expenditure, enterprises can purchase foreign exchange in advance to deposit in the account, the initial limit of 500,000 U.S. dollars.  The limit of individual foreign exchange purchases is substantially increased to USD 20,000, and the requirement of proofs is simplified.  Eligible banks can raise domestic institutions and individuals RMB funds, and can be converted into foreign currency and invested in foreign fixed income products.  Qualified securities institutions, such as funds, can collect foreign exchange from domestic institutions and individuals to invest in foreign stocks and other portfolio securities products.  Qualified insurance companies can purchase foreign exchange to invest in foreign fixed income products and money market instruments.  2. Micro: Changes in the RMB exchange rate since the reform of the exchange rate mechanism and volatility adjustment By May 31, 2006, the RMB had appreciated by 3.2% compared to 8.2765 RMB/USD before the exchange rate reform and by 1.1% compared to 8.11 after the exchange rate reform, with the mid-price breaking 8 on May 15 to 7.9982. Between July 21, 2005 and May 26, 2006, the trade-weighted exchange rate index of the U.S. dollar against major currencies fell from 85.2 to 80.96, indicating that the dollar had depreciated by 4.24% with significant fluctuations. By May 31, 2006, at 10.3016, the RMB had depreciated by 3% from the pre-exchange rate of 9.9914 RMB/EUR and by 2.8% from the post-exchange rate of 10.0141. By May 31, 2006, at 7.1437, the RMB appreciated by 2.4% from the pre-reform level of 7.31330 RMB/JPY and by 2.3% from the post-reform level of 7.30590. By May 31, 2006, at 1.03364, the RMB had appreciated by 2.9% from the pre-exchange rate of 1.0637 RMB/HKD and by 1.4% from the post-exchange rate of 1.0478. The hidden exploitation in the current international exchange rate mechanism Young scholar Liu Zhou discovered the exploitation in the current international exchange rate mechanism in his article "The Biggest Capital in the Age of Capital", uncovering the secret of exploitation in the international exchange rate mechanism. It is an exchange rate mechanism that favors "a few countries that exploit the whole world." For example, an American has $8,000 at the rate of $7.50 per dollar, which is a relatively common occurrence in the United States, but the American takes the $8,000 and converts it to RMB 60,000 in China. In China, where prices are extremely low and prices in the United States are extremely high, the value of the physical goods purchased in China with 60,000 RMB is many times more than the value of the physical goods that can be purchased in the United States with $8,000. This means that the American came to China with the $8,000, and without production, without labor, without risking any investment, the $8,000 achieved an exponential increase in capital appreciation, and an exponential capital profit. The relationship between China and the U.S. is the same as the relationship between all developing countries in the world and developed Western countries - that is, developing countries have low prices and low currency exchange rates, and developed countries have high prices and high currency exchange rates (the case of Japan is different, the yen has a low exchange rate). But Japans prices are extremely high, so people from Europe and the United States feel that they have no money when they come to Japan. However, people from Europe and the United States feel very rich when they come to a developing country like China, because on the one hand, the currency they carry can be exchanged for twice the currency of the country they are going to, and on the other hand, the prices of the country they are going to are terribly lower than the prices of their own country. (This is the basic reality of this era.) Therefore, the current international currency exchange rate mechanism is an extremely reactionary exchange rate mechanism, which is a very concealed tool of the Western developed countries to exploit the vast number of developing countries. It has evolved together with other parts of the unequal international economic and trade order as an instrument of peaceful plundering of developing countries by developed countries, and this so-called peaceful plundering is a continuation of the armed plundering of the colonial era (a truly equal exchange rate mechanism should basically take the price index of each country as the main basic indicator because lower prices mean that their currencies contain more physical quantities, so their The article also argues that the capitalists of developed countries (especially the capitalists of multinational conglomerates), ostensibly relying on their own capital and management tools to earn profits in the international market, but constituting the bulk of their profits, are actually We know that the existing unequal international trade mechanism is a product of historical colonial conquest by force, and it is still maintained by force today. Therefore, there is no doubt that the capitalists of the developed countries, when they make profits peacefully in the international market, they are essentially making a peaceful plunder; they are making this hypocritical peaceful plunder, but they are essentially making a new sense of force plunder, essentially participating in a bloody and dirty war of plunder across the historical era. are making money by force, they are still making war money so that the greatest capital of the capital era is not capital but violence
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