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What is the relationship between trade surplus and exchange rate?
The foreign trade between the two countries can be divided into three situations: trade surplus, foreign trade balance and trade deficit. The trade surplus means that the total amount of foreign trade exports is greater than the total amount of imports in a certain period of time, the foreign trade balance means that the two are flat or basically equal, and the deficit means that the total amount of exports is less than the total amount of imports. Exchange rate refers to the direct exchange rate between a country's basic currency and other foreign currencies, which can be divided into direct quotation method and indirect pricing method. In the direct quotation, the unit foreign currency is equivalent to the domestic currency (for example, 1$ is about 6.28 RMB), while the indirect pricing method is how many foreign currencies are converted according to the domestic currency (for example, 1 RMB is about 0. 159$). Of course, the trade surplus is beneficial to China, which shows that China is in an advantageous position in foreign trade during this period, while the exchange rate reflects the progress of trade and plays a regulatory role in trade. Exports exceed imports, and China's foreign trade is in a favorable position. Of course, finance also has an impact, stimulating the exchange rate between China and foreign countries to maintain or develop in a favorable direction.