Recently, the renminbi has been falling continuously, and many people say that hot money is almost gone, which is not in line with convention. How can hot money come out when the RMB depreciates? Oper

Recently, the renminbi has been falling continuously, and many people say that hot money is almost gone, which is not in line with convention. How can hot money come out when the RMB depreciates? Operating at a loss? Due to the expectation of RMB appreciation, when the exchange rate is high, foreign speculators use less foreign currency, mainly US dollars, to exchange more RMB. After the appreciation of RMB, RMB will return to USD, which will bring more USD. When the expectation of RMB appreciation is weakened or basically gone, there will be a large number of speculators who need to change their RMB into dollars and flee, and the RMB will fall.

Due to the influx of dollars at first, the central bank needs to issue RMB to hedge the influx of foreign exchange in dollars. If US dollars are converted into RMB, it will be more, which is equivalent to the total amount of RMB currency. If the total amount is more, it will naturally depreciate.

Son of a bitch like Goldman Sachs basically released a report on the expectation of RMB depreciation when he fled (the expectation of RMB appreciation and depreciation is based on the economic development and operation of China, and it is expected that RMB will depreciate when the economy begins to decline).