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Balance of supply and demand in foreign exchange market
The balance of payments is only one aspect of a country's economic goals, and the implementation of fiscal or monetary policies has an all-round impact. If we do not consider other aspects, we only analyze the adjustment of the international surplus:

1. Foreign exchange should be sold in the foreign exchange market. The exchange rate is determined by market supply and demand. Surplus will increase the foreign exchange supply and the local currency will appreciate. In order to maintain the stability of the exchange rate, foreign exchange will be sold to balance the supply and demand of local currency and foreign exchange in the market.

2. Tight monetary policy and tight fiscal policy should be adopted. Tightening monetary policy, increasing tax revenue and expenditure, directly reducing the after-tax profits of enterprises, reducing the enthusiasm of enterprises for production, weakening the international competitiveness of export commodities, affecting exports, and achieving balance of payments; Tight monetary policy mainly means that the money supply in the market decreases, the interest rate rises, the financing cost of enterprises increases, the cost of enterprises increases and the profit of enterprises decreases. Of course, the rise in interest rates will also make arbitrage funds flow in to some extent.

3. Let the local currency appreciate. The appreciation of local currency reduces the amount of foreign exchange converted by export enterprises under the same foreign exchange, which reduces the profits of enterprises. Reduce export enthusiasm and affect export competitiveness.