The impact of the appreciation and depreciation of the local currency on imports and exports

1. Impact of income and expenditure:

The depreciation of the local currency has an impact on import and export earnings. The depreciation of a country's currency reduces the value of its own goods relative to foreign products, so that foreign people increase their demand for domestic products, and their residents reduce their demand for foreign products, which is conducive to its own exports and reduces imports; The purchasing power of foreign currency.

Relative increase, depreciation of domestic goods, services, transportation, accommodation and other expenses are relatively cheap, which is conducive to attracting foreign tourists, expanding the development of tourism, and promoting the increase of employment and national income.

The depreciation of the local currency also has an impact on international capital flows. If the depreciation trend continues, people will move money from their home countries to other countries, causing capital outflows.

2. Domestic influence:

After the depreciation of the local currency, a country's income will often be improved, and the proportion of the foreign trade sector in the entire economic system will expand, thereby improving the degree of opening up of the country to the outside world, and more products can compete with foreign products.

The depreciation of the local currency also has an impact on prices. On the one hand, the expansion of exports has caused demand to pull up prices; On the other hand, by raising the cost of domestic production.

The impact of currency depreciation on prices will gradually expand to all commodities, which can easily lead to inflation.

3. World Impact:

Exchange rate changes in small countries have only a slight impact on the economies of partner countries, but currency depreciation in major industrial countries can affect their countries' balance of payments, which can lead to wars.

and exchange rate wars, and affect the world economy.

development. Changes in the exchange rates of the major industrialized countries can also give rise to international finance.

Turbulence in the field. International** and borrowing activities will lead to the sucking in of depreciated currencies.

The party that suffers a loss, and the party who has to pay for the depreciated currency, will profit from it.

The instability of the exchange rates of major currencies can also have a huge impact on the international reserve system and the international financial system.

The official website shall prevail.

The national currency has depreciated.

Your cost is lower than that of other countries.

Your cost is low.

The foreign exchange you earn from exporting abroad is converted into your currency.

To put it back in perspective. If the country's currency appreciates.

Your costs are higher than those of other countries.

And the higher your cost, the less profit you receive from exporting.

I don't know how to explain it, do you understand?

Is <> depreciation of the renminbi better for exports or imports? The depreciation of the renminbi is, of course, beneficial to exports. How so?

Because the depreciation of the renminbi means that the renminbi is not very valuable, the foreign currency will be quite expensive, and foreign friends will become cheaper to buy things in our country. For us, it is the convenience of exporting goods. On the contrary, it is not conducive to our imports, the RMB is not valuable, we need more RMB to buy goods abroad, and the expensive things are not conducive to imports.

Imports will decrease, and the profits of import-oriented enterprises will decrease: when importing goods, they must first convert Renmin Prefecture currency into foreign currencies such as US dollars at the bank, and then purchase goods from abroad. After the depreciation of the renminbi, the same renminbi will be exchanged for fewer dollars and the amount of goods purchased will be less, resulting in an increase in import costs and a decrease in the competitiveness of imported goods.

As we all know, the depreciation of the RMB means that the foreign currency appreciates, and for foreign escorts, they can buy a lot of our goods with the same **, which is conducive to our exports. At the same time, the depreciation will bring a ** surplus, which is not good for importers, because the cost of payment will increase. The cost of traveling and studying abroad has also increased.

The depreciation of the RMB may also lead to the outflow of foreign capital or China's funds, which is conducive to bearish**.