When the local currency depreciates, net exports may not necessarily rise. At the initial stage of local currency depreciation, the price elasticity of demand will show a certain lag, that is to say, the relationship between supply and demand will not be adjusted immediately because of price changes, and supply and demand will remain basically unchanged. If the local currency depreciates again, the measured net export will decline. Therefore, the depreciation of the local currency may lead to a decline in net exports. This is not absolute.

From the perspective of foreign exchange market transactions, international trade in goods and services constitutes the basis of foreign exchange transactions, so they also determine the basic trend of the exchange rate. If exports decrease, if it is a deficit, the country will have extra demand for foreign currency, which will cause foreign exchange appreciation and local currency depreciation in the foreign exchange market. If the surplus decreases, the foreign demand for domestic currency will decrease, which will also cause the local currency to depreciate.