The influence of foreign exchange reform on China is as follows: 1. The total amount of foreign currency in banks will shrink.
In the capital composition of many Chinese commercial banks, capital usually occupies a certain proportion. After the adjustment, the commercial banks will face the situation of the reduction of capital amount, especially the commercial banks that have been funded by dollars in recent years, which will have an obvious impact.
2. Weakening export competitiveness will weaken the export competitiveness of enterprises on the one hand, and stimulate the increase of import trade on the other hand, thus affecting the business and earnings of commercial banks.
Therefore, the commercial bank’s foreign exchange settlement income may also be affected.
