Chapter 1560 [If the price does not rise, you will buy it. If the price rises, you will still buy what you should buy]
Fang Hong looked at the participants in the video and said in an orderly manner: "Now that our country can supply goods to the world, they have to buy it or not. It makes no sense not to make money. I even think it will go up a bit." It’s not impossible to raise prices.”
Under normal circumstances, currency depreciation is beneficial to exports but not imports. This is mainly because currency depreciation means that the country's currency is worthless. Foreign currencies can be exchanged for more amounts in exchange for the country's currency. The same is true in foreign trade. Foreign currency funds can purchase more goods from that country, and people are more willing to place orders to purchase goods from that country.
Currency depreciation is detrimental to imports, meaning that more funds need to be spent to purchase foreign goods.
If the currency appreciates, it will have a huge impact on export trade and be beneficial to imports.
Take the RMB against the U.S. dollar as an example. It is currently 7 to 1. If it appreciates to 6 to 1, this is the depreciation of the U.S. dollar relative to the RMB, which means that the U.S. dollar can be exchanged for less RMB.
After the appreciation of the RMB, the amount of Dongda's commodities that can be purchased with the same amount of U.S. dollars has been reduced, and Beijing Magnesium's imports of Dongda's commodities have also decreased. However, Beijing Magnesium's commodities have depreciated to a certain extent for Dongda, which makes Beijing Magnesium The products can be sold cheaply to Dongda.
In fact, there are not many products that Dongda can sell to Dongda, and Dongda will not be able to sell the drugs that Dongda wants, and it will not be able to produce those that Dongda does not want.
Only under normal circumstances will currency appreciation benefit imports and disadvantage exports.
But the problem is that we are at an extraordinary moment. Even if the RMB appreciates against the US dollar, it will not only benefit imports, but will not affect exports at all.
The answer is simple, because the global supply chain is now broken and almost in a state of shock. Only Dongda's industrial production capacity in the world can operate normally, and its production capacity is even expanding, while other regions are in a state of production suspension.
In this case, whether your currency appreciates or not, he will have no choice but to pay for it and buy goods from you. He has no bargaining power.
Then why doesn't it appreciate?
At this moment, Fang Hong added with a smile: "Of course, more importantly, we will have more room to cut interest rates."
Everyone present at the meeting couldn't help but nodded. Now Dongda is indeed in a situation where it is firmly on the Diaoyutai. It is already terrifyingly strong, but it also won a bye. The advantage is not small.
After some discussion, which continued for about twenty minutes, a consensus was finally reached.
That is to choose to stay put and not follow Ah Mei's pace of interest rate cuts. This is actually a very important signal, which means that the relationship between the RMB and the US dollar has begun to become less dependent.
The final decision is a "spicy powder" operation. The regular operation of the 100 billion yuan medium-term lending facility (MLF) will be carried out tomorrow. The operating interest rate is 3.15%, which is the same as before, and will not be conducted like the Fed.
However, other countries have already started to move forward, and countries like Xiaori and Australia have implemented zero interest rates for a long time. As the U.S. dollar is currently the most important currency in the world, its interest rate level is also the benchmark for comparison of various currencies.
If the Fed does this, the interest rate spread between Beijing Magnesium and Xiaori will shrink, directly to the lowest level in the past five years.
Hot money in the market is all about profit, and it will go wherever interest rates are high.
Therefore, when the interest rate difference between Afghanistan and other regions narrows, it means that the attraction of the U.S. dollar will also weaken. There will be no more funds to buy U.S. dollars, and the U.S. dollar will tend to depreciate.
In fact, this is indeed the case. As soon as the morning passed, on Monday, March 16, the U.S. dollar fell sharply against the Japanese yen and the euro.
After the Federal Reserve announced zero interest rates, many central banks around the world also followed suit. Xinxilanyang Bank announced an interest rate cut of 75 basis points and was preparing a large-scale stimulus plan; Nanbangzi also followed suit and cut interest rates by 50 basis points in advance.
With interest rates at a historical low of 0.75%, Bangzi was not supposed to hold an interest rate meeting until April, but obviously it couldn't wait any longer.
In addition, Xiaori also moved forward the interest rate meeting originally scheduled for Wednesday and Thursday to Monday, and launched a series of rescue plans to inject funds into the stock market and the economy. This is the first time since November 2011.
It was my first time to have a meeting outside of my regular schedule.
As daylight gradually enters the East Eighth Time Zone, the A-share market is about to usher in its first trading day this week.
Ah Mei dropped such a bomb last night. Under the global system, the big eastern countries cannot be completely immune. Now, the outside world is cutting interest rates. People here in China are now very concerned about whether they will follow up on the interest rate cuts.
One is what kind of trend will the RMB exchange rate have in the future?
The outside world definitely doesn't know, but Fang Hong knows that he will not follow up on the interest rate cut, but will just put out some "spicy noodles" normally, let alone follow other rice farming companies.
As for the RMB exchange rate, once the external turmoil in the past two months is almost over and the panic is released, an extremely strong and epic unilateral appreciation trend will inevitably come.
Now everyone in the world can only buy from me. If I don’t raise the price, you have to buy it. If I raise the price, you still have to buy what you should buy.
…
As time passed by, at around 8 o'clock in the morning, the small stock market in the peripheral Asia-Pacific market opened first, and its 225 index plunged at the opening, followed by all major markets in the Asia-Pacific.
At 8:55, the opening price of the SGX 50 Index came out. Instead of opening lower, it opened 0.52% higher at 6179.14 points despite the negative external factors. This was mainly due to the high weight of those listed companies in the galaxy.
The opening supported the higher opening of the New Securities 50 Index.
Because stock buybacks will continue today, and call auctions will begin.
However, the external market is really stretched, and the panic caused by the negative external conditions is too great. Especially the "big smart" rescue strategy launched by the Federal Reserve over the weekend frightened everyone, causing the New Securities 50 Index to trade at 9
After clicking on the opening, open high and go low.
It soon broke through the 6100 point mark and began to test the important integer mark of 6000 points.
At about 9:46, the 6,000-point mark was in danger, but it rebounded later because major listed companies in the galaxy were buying back stocks in the secondary market, and stabilization funds were also in order.
Increase holdings of six major new certificates 50ETF as planned.
At around 10:30, the NSE 50 Index fell back to the day's previous low again, once again testing the support of the 6,000-point mark. However, it stabilized afterwards and did not fall below the day's previous low, and rebounded steadily again.
At this moment, the repurchase funds of many listed subsidiaries in the SGX market and the trillion-dollar stabilization funds have almost become the only bulls in the market, while most other funds are bearish on the market.
Sell sell.
Foreign investors are selling, selling, domestic institutions are also selling, selling, and investors have been holding the New Certificate 50 ETF for a long time. They are either taking profits or reducing their positions.
However, the super main force has also shown strong bullish strength. With the increase in holdings of the SGX Trillion Leveling Fund and the continuous repurchases of major listed companies in the galaxy such as Xingyu Technology and Matrix Quantum, the SGX 50
The index rebounded steadily again after 10:30, regaining the 6100-point mark.
At around 11 o'clock, major market software pushed messages:
[The SGX 50 Index turned red, regaining the 6,100-point mark, and the current SGX market turnover exceeds 650 billion]
