Proceedings of the 2022 International Conference on Bigdata Blockchain and Economy Management (ICBBEM 2022)

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Pre-assessment of the Impacts of the RMB/USD Exchange Rate’s Depreciating on China’s Economy and Trade

Authors
Tianyi Xia1, *, Qirong Zhu2
1School of Business, Macau University of Science and Technology, Avenida Wai Long, Taipa, Macau, China
2School of International Trade and Economics, Shandong University of Finance and Economics, Jinan, 250014, China
*Corresponding author. Email: lilanworld@126.com
Corresponding Author
Tianyi Xia
Available Online 20 December 2022.
DOI
10.2991/978-94-6463-030-5_46How to use a DOI?
Keywords
RMB Exchange Rate Declining; Economic Impacts; GTAP
Abstract

Recently, the pace and intensity of China’s loose monetary policy has continued to increase, and the short-term interest rate gap between China and the United States has fallen sharply, which may trigger the depreciation of RMB/USD. This study converts the changes in the exchange rate of RMB/USD into the equivalent value of China’s export subsidies and import tariff changes, and then uses the GTAP model to analyze the macroeconomic and industrial impacts of the exchange rate’s depreciating on China. The research results are as follows: Firstly, the decline of the RMB exchange rate has double impacts on China’s macro-economy. On the one hand, it may lead to an increase in China’s GDP, residents’ income, and foreign trade surplus. On the other hand, it may cause a decline in the welfare benefits of China’s household consumption, and the net return on capital repatriation and social welfare. Secondly, the depreciation of the exchange rate also may have two effects on China’s industries. On the one hand, it may expand China’s exports. On the other hand, it may lead to a decline in China’s output and imports, and also increase China’s price level.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 International Conference on Bigdata Blockchain and Economy Management (ICBBEM 2022)
Series
Atlantis Highlights in Intelligent Systems
Publication Date
20 December 2022
ISBN
10.2991/978-94-6463-030-5_46
ISSN
2589-4919
DOI
10.2991/978-94-6463-030-5_46How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Tianyi Xia
AU  - Qirong Zhu
PY  - 2022
DA  - 2022/12/20
TI  - Pre-assessment of the Impacts of the RMB/USD Exchange Rate’s Depreciating on China’s Economy and Trade
BT  - Proceedings of the 2022 International Conference on Bigdata Blockchain and Economy Management (ICBBEM 2022)
PB  - Atlantis Press
SP  - 440
EP  - 457
SN  - 2589-4919
UR  - https://doi.org/10.2991/978-94-6463-030-5_46
DO  - 10.2991/978-94-6463-030-5_46
ID  - Xia2022
ER  -