1655 Chapter 1654 Defending Yayuan (seeking subscription!) (1/2)
Burmese.
Xin'an City.
A secluded teahouse.
The crowd sat in a circle and drank tea. Tang Kai was not unreasonably generous. He took out the tea that Tang Qing had given, so as not to let these people always ask for it and refuse it, and embarrass Tang Qing.
”You said, this time, will inflation break out and the money is worthless?”
Take a sip.
The head of a local family worried.
Just at the meeting.
Did not dare to mention it.
But it doesn't mean that they don't care about issuing a lot of money and inflation. This is basic financial knowledge. There is more money, but it is not worth it. If so, it will make people disturbing.
”Why didn't you just ask.”
”you dare?”
”Don't dare.”
”That's not enough.”
”In fact, you should look at it from another angle. In any country, as long as it is in a period of rapid development, inflation is inevitable, but as long as the exchange rate fluctuates little, there is no need to be afraid.”
”Inflation mainly refers to the decline in the purchasing power of currencies and the rise in domestic commodity and asset prices. But do you think it will happen when the prices of raw materials are not fully market-oriented?”
”No, in the Special Economic Zone of Myanmar, the Bank of Myanmar Group has been pricing in grain, vegetables, meat, and industrial raw materials in order to stabilize prices in the final consumer market.”
”As long as the mouth is not relaxed, the purchasing power of people's currency holdings will not change much. How much rice was a catty last year, and the increase in the first half of this year has not been 3%.”
”The average person doesn't feel it at all.”
”The salary still feels sufficient.”
”However, the stability of commodity prices is due to policies and pricing. However, asset prices are rising. Therefore, inflation is not what we should be concerned about. It is a matter for ordinary people.”
”exchange rate.”
”It is the criterion that determines the absolute value of our wealth.”
Miao Yin analyzed.
Take a sip of tea.
carry on.
”The exchange rate currently adopts a fixed exchange rate system, which is directly determined by the Bank of Myanmar, plus foreign exchange controls. In the short term, there will not be much change unless someone shorts the Asian dollar.”
”However, this path will not work for the time being. The Bank of Myanmar has not yet relaxed its foreign capital borrowing in the Asian dollar. For situations like Soros shorting the Thai baht, don't even think about it.”
”In the future, as the circulation of the Asian dollar becomes larger and larger, the floating exchange rate will definitely be implemented. This is undoubtedly, but this does not mean that our wealth will depreciate significantly.”
”How to avoid devaluation?”
”First of all, of course the exchange rate system.”
”Secondly, there are several products under the Myanmar-Asian department that can earn a lot of wealth from other countries.”
”In the end, it's us.”
”Why let us go out? Why encourage investment in foreign trade companies, in addition to increasing the circulation of the Asian dollar, is to let us make more money, form an internal loop, and protect the value of the Asian dollar.”
Hear this.
Some people tilt their heads.
I feel like I don’t understand it!
Inner loop?
What is the loop?
Shook his head.
Miao Yin felt that these old friends used their brains to make money, and seldom thought about the intention of going up the peak. He also had a son who was in charge of economic policy design, and his vision was much higher.
”What is internal circulation?” someone asked.
Miao Yin chuckled.
”For example, in the past, if people did not receive Asian dollars when importing timber, we had to give them foreign exchange. As a result, the foreign exchange reserves were reduced, and the ability to withstand exchange rate shocks was weak.”
”Now, even if people are willing to accept Asian dollars, they may turn to our central bank to exchange them for US dollars or euros. As a result, foreign exchange reserves are still reduced, which is not much different from the previous ones.”
”However, if we acquire this company and use Asian dollars for settlement, do we need to exchange for dollars when we get Asian dollars? No, we can hold it for a long time.”
”Once someone wants to short the Asian dollar.”