1, and the result is that a positive value indicates the appreciation of the local currency and a negative value indicates the depreciation of the local currency. There are usually two expressions of exchange rate, local currency exchange rate and foreign currency exchange rate, which are relative concepts, and the economic phenomena caused by their ups and downs are just the opposite.
2. Exchange rate refers to the ratio or price of one country's currency to another country's currency, or the price of another country's currency expressed in one country's currency. Exchange rate changes have a direct regulatory effect on a country's import and export trade. Under certain conditions, by devaluing the local currency, that is, letting the exchange rate rise, it will promote exports and restrict imports; On the other hand, the appreciation of the domestic currency, that is, the decline of the exchange rate, plays a role in restricting exports and increasing imports.
1, exchange rate (also known as foreign exchange rate, foreign exchange rate or foreign exchange market) The exchange rate between two currencies can also be regarded as the value of one country's currency against another. Exchange rate is also a financial means for a country to achieve its political goals. The exchange rate will change because of interest rates, inflation, national politics and national economies. The exchange rate is determined by the foreign exchange market. The foreign exchange market is open to different types of buyers and sellers to conduct extensive and continuous currency transactions (foreign exchange transactions are conducted 24 hours a day except weekends, that is, from 8: 15 GMT on Sunday to 22:00 GMT on Friday). Spot exchange rate refers to the current exchange rate, and forward exchange rate refers to the exchange rate quoted and traded on the same day, but paid on a specific date in the future).
2. For example, if the exchange rate between RMB and USD is 0. 1502 (indirect pricing method), then the price of a commodity in the United States is 15.02 USD. If the exchange rate of RMB against the US dollar drops to 0. 1429, that is, if the US dollar appreciates and the RMB depreciates, you can buy this commodity with less dollars. The price of this commodity in the United States is 14.29. Therefore, the price of this commodity in the American market will become lower. Commodity prices decrease, competitiveness becomes higher, and it is cheap and easy to sell. On the other hand, if the exchange rate of RMB against the US dollar rises to 0. 1667, which means that the US dollar depreciates, then the price of this commodity in the US market will be 16.67 after the appreciation of RMB, and the dollar price of this commodity will become more expensive and buy less.