Foreign exchange dumping is a special means for export enterprises to compete for foreign markets by using the depreciation of their own currencies. When a country's currency depreciates, the foreign currency price of export commodities falls, which improves the competitiveness of commodities and thus expands exports.

(2) Conditions for foreign exchange dumping.

The degree of currency depreciation is greater than that of domestic price increase. Currency devaluation will inevitably lead to the trend of rising domestic prices. When domestic price rises catch up with or exceed currency depreciation, the gap between external depreciation and internal depreciation disappears, and the conditions for foreign exchange dumping do not exist. However, there is always a process for domestic prices and export prices to rise. This is not to say that as soon as the domestic currency depreciates, domestic prices will immediately respond to the rise. In a certain period of time, it always lags behind the degree of foreign currency depreciation, so monopoly organizations can get the benefits of foreign exchange dumping.

(2) Other countries have the same devaluation range, and the range of taking other retaliatory measures is different. If other countries devalue by the same amount, then the devaluation of currencies will offset each other, and the exchange rate will still be at the level before devaluation, and the benefits of currency depreciation will not be obtained. If foreign countries take other retaliatory measures to restrict imports, such as raising tariffs, it will also have an offset effect.