How to manage money when the renminbi depreciates

The statement of RMB depreciation is actually determined by the exchange rate between the RMB and the dollar. How can we manage money if the renminbi depreciates?

Although judging from the current situation, it is too early to determine the future trend of the renminbi, It is very helpful for you to plan ahead and learn the relevant knowledge.

Some foreign currency financial management experts believe that the devaluation of the renminbi should be a short-term adjustment, and the possibility of sustained devaluation is not high. For investors who already have some foreign exchange operation experience, Foreign Exchange Commission experts suggest selecting band operations. At present, there are still a lot of trading tools in the exchange market, for example, the Bank launches foreign currency deposit transactions and foreign currency option transactions, which are very attractive to investors.

It is worth mentioning that, assuming the RMB enters the channel of devaluation, the investment value of foreign currency financial products will be highlighted. According to the current market situation, the foreign currency financial products with a yield of less than 3% last year have recently risen to more than 5%. Especially for financial products like the Australian dollar, the highest rate of return has reached 5.2%.

How to manage money when the renminbi depreciates

In addition, as China's labor costs increase and economic growth decline, foreign capital investment in China shows a downward trend, that is, foreign capital is being withdrawn. When foreign capital is withdrawn, the RMB it invests in China will be sold and converted into US dollars for outflow, which puts a lot of pressure on selling RMB disks. Currently, it is obvious that many manufacturing multinational companies have successively withdrawn from foreign capital, this is also the driving force for RMB downstream.

So how long will the RMB depreciate? Chen believes that from the historical experience, the US dollar backflow usually lasts about 5-10 years, and is expected to last about three years until around 2015. At this stage, the pressure of RMB depreciation will continue to exist and it will continue to depreciate for a period of time.

For ordinary investors, although there are not many channels for direct investment in futures and the risks are high, indirect investment is made through various means, especially structural financial products. This type of financial products is suitable for customers with judgment. Generally, it is recommended that 10% of assets be configured, that is, only 10% of assets are used to purchase financial products linked to gold. At the same time, it is recommended that investors consider gold financial products with unilateral touch type and accumulative range type during the period.