Exchange rate

Exchange rate, also known as foreign exchange rate, foreign exchange rate or foreign exchange market, refers to the exchange rate between two currencies, and can also be regarded as the value of a country’s currency against another currency. The exchange rate is a financial means for each country to achieve its political goals, and the change of the exchange rate has a direct regulating effect on a country’s import and export trade. Under certain conditions, depreciating the domestic currency, that is, lowering the exchange rate, will promote exports and restrict imports; on the contrary, the external appreciation of the domestic currency, that is, an increase in the exchange rate, will play a role in restricting exports and promoting imports.

There are usually two ways to express the exchange rate, that is, the local currency exchange rate and the foreign currency exchange rate. Expressed by the amount of foreign currency that can be exchanged for a unit of domestic currency, it is called the domestic currency exchange rate, and its formula is 100￥=x foreign currency; The formula is 100 units of foreign currency = x￥.