For example, import and export companies purchase goods from abroad or export goods to foreign countries. It reflects the commodity trade between countries, is an important indicator to judge the macroeconomic operation, and is also one of the important indicators for the basic analysis of foreign exchange transactions. To put it simply, when a country's total imports are greater than its total exports, it is a trade deficit, also known as a trade deficit; When exports exceed imports, it is called trade surplus; When exports are equal to imports, it is called trade balance. The data of trade balance is reflected in the market trend. Often, when the country's foreign trade deficit widens, it will weaken the country's currency and make it fall. On the contrary, when there is a foreign trade surplus, it is good for this currency. Non-trade items are relative to trade items and are two components of current account. Non-trade items include labor income and expenditure and unilateral transfer. Labor revenue and expenditure refers to the monetary revenue and expenditure related to labor services caused by providing labor services to foreign countries. For example: construction, installation, supervision, construction, transportation, decoration, maintenance, design, debugging, consulting, auditing, computer information services, etc. In the service industry; International seaborne exports; Foreign exchange receipts and payments generated by commercial performances of cultural and sports industries (actors, singers and athletes). Trade balance indicators (I) The meaning of trade balance figures The trade balance figures reflect the commodity trade between countries, which is an important indicator for judging the macro-economic operation and one of the important indicators for the basic analysis of foreign exchange transactions. If a country's total imports are greater than its total exports, there will be a trade deficit; If exports exceed imports, it is called trade surplus; If exports and imports are equal, it is called trade balance. American trade figures are published once a month, and last month's figures are published at the end of each month. China also publishes import and export data at least once a quarter. If a country often runs a trade deficit, national income will flow out of the country, thus weakening the national economic performance. If the government wants to improve this situation, it must devalue its own currency, because devaluation, that is, lowering the price of export commodities in disguise, can improve the competitiveness of export products. Therefore, when the country's foreign trade deficit expands, it will weaken the country's currency and make the country's currency fall; On the contrary, when there is a foreign trade surplus, it is good for this currency. Therefore, the international trade situation is a very important factor affecting the foreign exchange rate. The trade friction between Japan and the United States fully illustrates this point. The trade deficit between the United States and Japan has occurred year after year, which has caused the deterioration of the US trade balance. In order to limit Japan's trade surplus with the United States, the United States government put pressure on Japan to force the yen to appreciate. On the other hand, the Japanese government tries its best to prevent the yen from appreciating too fast in order to maintain a favorable trade situation. From the influence of a country's foreign trade on the exchange rate, we can see that the balance of payments directly affects the change of a country's exchange rate. If there is a surplus in a country's balance of payments, the country's demand for money will increase, and the foreign exchange flowing into the country will increase, which will lead to an increase in the currency exchange rate. On the contrary, if a country has a deficit in its balance of payments, the demand for its currency will decrease, and the foreign exchange flowing into the country will decrease, which will lead to the decline of its currency exchange rate and the depreciation of its local currency. Specifically, in the balance of payments, in addition to the above-mentioned trade items, there are also capital items that have the greatest impact on exchange rate changes. The surplus or deficit of trade balance directly affects the rise or fall of currency exchange rate. For example, an important reason for the decline of the US dollar exchange rate is that the US trade deficit is getting bigger and bigger. On the contrary, due to the huge trade surplus, Japan's balance of payments is in good condition, and the foreign exchange rate of the yen is on the rise. Similarly, the surplus or deficit of the capital account directly affects the rise and fall of the currency exchange rate. When a country has a large deficit in its capital account and other items in its balance of payments are insufficient to make up for it, the country will have a deficit in its balance of payments, which will lead to a decline in the foreign exchange rate of its own currency. On the contrary, it will cause the exchange rate of the domestic currency to rise.