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Exchange rate

Exchange rate

Exchange rate refers to the ratio or exchange rate of one country's currency with another country's currency, or the price of another country's currency expressed in the currency of one country.Exchange rate fluctuations have a direct regulating effect on a country's import and export trade.Under certain conditions, the devaluation of domestic currency, that is, the decline of exchange rate, will play a role in promoting exports and restricting imports.On the contrary, the appreciation of domestic currency, namely the exchange rate rise, will restrict exports and increase imports.

The rise and fall of a country's foreign exchange market will have an impact on import and export trade, economic structure and production layout.Exchange rate is the most important adjustment lever in international trade. Exchange rate decline can promote exports and restrain imports.


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