The Sharp Decline In Foreign Exchange Reserves Is The Most Important Anchor In The Foreign Exchange Market.

Over the past two years, foreign exchange reserves have declined sharply, mainly due to capital outflows, including overseas investment, a large increase in overseas consumption, and various legal or illegal capital flight.

Behind it, the investment environment in the mainland has lost its comparative advantage, and its investment efficiency is becoming increasingly low. The investment cost is getting higher and higher. This is a continuous withdrawal from foreign capital (in the fixed assets investment, the utilization of foreign capital has dropped from 6.3% in 2014 to 29.6% in 2015 and 20.2% in October this year). The growth of private investment has been maintained at a little more than 2% for several months. This is the best evidence.

On the other hand, though

The data are mild but real prices are rising. Anyone who has been abroad knows that many countries are cheaper than China, including high-end consumer goods and daily necessities.

The most unbearable thing is that housing prices remain high, with no higher or higher level, forcing many people to take risks at home and overseas ventures.

In the first trading day of October, the US dollar broke 6.7 compared to the RMB, and it only relaxed for 6.8 days in a month or 11. That is only a week now. By November 18th, it has closed 6.8921 on shore and 6.91 on shore.

Although some official scholars and mainstream media have repeatedly stressed that the yuan does not exist on the basis of long-term depreciation, the depreciation is also relative to the US dollar; and the strength of the US dollar is expected to rise sharply after Trump's election.

All in all, they are all caused by external factors. Moreover, compared with other currencies, the depreciation rate of the renminbi is still "excellent". Compared with the package currency, the RMB even appreciates.

But everyone knows that in this world, the US dollar is the most important anchor in the foreign exchange market.

We can not let the housing prices continue to burn high! For me and other people, we should actively consume and consume ahead of schedule.

This is not only a protection for our own wealth under the depreciation of the local currency, but also a wise move to boost domestic demand and stimulate the economy.

Yu Yongding, a member of the former central bank's monetary policy committee, threw out a heavyweight data: "China.

From nearly $4 trillion to $3 trillion, this is a stunning and heartache case.

Statistics show that since October 2014, China's foreign exchange reserves reached the highest value of 39932 billion dollars, which has dropped to 3 trillion and 166 billion 380 million US dollars at the end of October this year, with a net decrease of 826 billion 820 million US dollars in two years.

Moreover, this is still in the past two years, China's frequent trade surplus has been reduced: import and export balance in 2014, trade surplus of 23489 billion yuan; 2015 trade surplus of 36865 billion yuan, if the exchange rate at that time, increased foreign exchange reserves of $950 billion.

Moreover, this is the case in the past two years of reducing US Treasury bonds. At the end of 2015, China's holdings of US Treasury bonds decreased from US $1 trillion and 250 billion 400 million last year to US $1 trillion and 246 billion, and then reduced to US $1 trillion and 160 billion in June this year, which has reduced US $about 90000000000 in less than two years.

In this way, our country should increase 1 trillion US dollars, but the actual situation is reduced by about 820000000000 US dollars.

Of course, China still holds more than 3 billion US dollars in foreign exchange reserves. It is still the largest foreign exchange reserve in the world and the largest creditor of US Treasuries.

The problem is that China is implementing.

If the control is released, as Yu Yongding asked, "if China has 20 million middle class, it wants to change 50 thousand dollars every year, the amount will be very huge. Will the 3 billion foreign exchange reserves withstand the consumption?" Yu Yongding also mentioned that the total resources of IMF were only 660 billion dollars, and the total utilization of the total amount of 350 billion US dollars during the Southeast Asian crisis.

Since the entry of WTO at the beginning of this century, 1 billion 300 million people have been able to accumulate 4 trillion foreign exchange with their hands. It is not a trivial matter to lose 800 billion dollars in two years.

To sum up, in order to let the RMB go out of the trend of devaluation, it is necessary for all levels of government to create conditions and improve the investment environment. The most important thing is not to let housing prices continue to burn high.

This is not only a protection for our own wealth under the depreciation of the local currency, but also a wise move to boost domestic demand and stimulate the economy.