Exchange rate can be understood as price. When the exchange rate rises, the price will rise.

There are two main ways to express the exchange rate: one is based on how much local currency the unit foreign currency is converted into, that is, direct quotation, for example, China's 100 USD =637.35 RMB. In this way, the rise of exchange rate means that the unit foreign currency is converted into more local currency, that is, the local currency depreciates; The other is how much foreign currency the local currency is converted into, which is called indirect pricing method. Under this representation, the rise of foreign exchange rate means the appreciation of local currency.

Most countries in the world quote directly, so there is no special explanation. The direct purchase price is the default purchase price, and the exchange rate rises to the depreciation of the local currency. Generally speaking, the exchange rate refers to the conversion of foreign currency into RMB.

(2) The exchange rate rises, the local currency depreciates, and the amount of unit foreign currency converted into local currency increases. Under the condition that the domestic price remains unchanged, more domestic goods can be purchased, which is beneficial to domestic exports. On the contrary, the exchange rate rises, the local currency depreciates, and more local currency is needed to import foreign goods with the same price, which increases the import cost and is unfavorable to imports. Therefore, the rise of exchange rate is conducive to the development of the country's international balance of payments in the direction of surplus.