Exchange rate (also known as foreign exchange rate, foreign exchange quotation or foreign exchange quotation) The exchange rate between two currencies can also be regarded as the value of one country's currency against another.
Exchange rate is a financial means for a country to achieve its political goals. The exchange rate varies with interest rates, inflation, national politics and national economy.
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: 00 GMT on Sunday to 22:00 GMT on Friday. The real-time exchange rate refers to the current exchange rate, and the long-term exchange rate refers to the exchange rate quoted and traded on the same day, but paid on a specific date in the future).
The fluctuation of a country's foreign exchange market will affect its import and export trade, economic structure and production layout. Exchange rate is the most important adjusting lever in international trade, and the decline of exchange rate can promote exports and curb imports.
For example, the exchange rate of RMB against the US dollar is 0. 1502 (indirect pricing method), and the price of this commodity in the United States is 15.02. If the exchange rate of RMB against the US dollar falls to 0. 1429, that is to say, the US dollar goes up and the RMB goes down, so you can buy this commodity without the US dollar. The price of this commodity in America is $65,438 +04.29. Therefore, the price of this commodity in the American market will fall. Commodity prices will fall, be competitive, be cheap and sell well. On the contrary, if the exchange rate of RMB against the US dollar rises to 0. 1667, which means that the US dollar depreciates and the RMB appreciates, then the price of this commodity in the US market is 65,438 US dollars +06.67.