Because the decline of exchange rate means the depreciation of RMB, then, relatively speaking, the purchasing power of foreign currency will increase, and foreigners will tend to be willing to buy products from China.
For example. Suppose that the original value of RMB against the US dollar is 7: 1, and there is a commodity that sells for one yuan, then Americans can buy seven kinds of commodities with one yuan. Now the exchange rate is falling, the RMB is depreciating, and the exchange rate is 8: 1, so now Americans can buy eight goods for one dollar! In other words, this commodity has become cheaper for him, so under the assumption of rational economy, if the commodity is relatively cheaper, he will buy more of this commodity, then we can export this commodity more, and the export will increase, so it is conducive to export.
Currency foreign exchange rate, abbreviated as FXRate, is the abbreviation of English "foreign exchange rate". The price of foreign currency is expressed in domestic currency, and its level is ultimately determined by the foreign exchange market. Foreign exchange transactions are generally concentrated in financial institutions such as commercial banks. The purpose of buying and selling foreign exchange is to pursue profits. The way is to buy cheap and sell expensive, and earn the bid-ask difference. The exchange rate at which they buy foreign exchange is the buying exchange rate, also known as the buying price. The exchange rate of selling foreign exchange is called selling exchange rate, also known as selling price.
The exchange rate is also called "foreign exchange market or exchange rate". The ratio of one country's currency to another is the price of another currency expressed in one currency. Because of the different names and values of currencies in the world, one country's currency should set an exchange rate for other countries' currencies, that is, the exchange rate.
Exchange rate is the most important adjusting lever in international trade. Because the cost of goods produced by a country is calculated according to its currency, the cost of goods must be related to the exchange rate in order to compete in the international market. The exchange rate will directly affect the cost and price of the commodity in the international market and the international competitiveness of the commodity.