(1) interest rate refers to the ratio of the amount of interest to the amount of borrowed funds, that is, the principal, in a certain period of time.

(2) Exchange rate (also known as foreign exchange rate, foreign exchange rate or foreign exchange market) The exchange rate between two currencies can also be regarded as the value of one country's currency against another.

2. Different roles:

(1) Interest rate is the main factor that determines the capital cost of an enterprise, and it is also the decisive factor for enterprise financing and investment. To study the financial environment, we must pay attention to the current situation and changing trend of interest rates.

(2) Exchange rate changes have a direct regulatory effect on a country's import and export trade. Under certain conditions, the devaluation of the local currency, that is, lowering the exchange rate, will promote exports and restrict imports; On the other hand, the appreciation of the local currency, that is, the rise of the exchange rate, plays a role in restricting exports and increasing imports.

3. The decisive factors are different:

The determination of (1) interest rate depends on four factors: savings supply, investment demand, money supply and money demand. The factors that lead to the change of savings investment and money supply and demand will affect the interest rate level.

(2) The exchange rate is determined by the foreign exchange market.

4. Different impacts:

(1) Interest rates rose, credit tightened, loans decreased, investment and consumption decreased, and prices fell. To a certain extent, it will restrain imports, promote exports, reduce foreign exchange demand, increase foreign exchange supply, reduce foreign exchange rate and increase local currency exchange rate. Contrary to the rise in interest rates, when interest rates fall, credit expansion, money supply increase, stimulate investment and consumption, and promote price increases, which is not conducive to exports and is conducive to imports.

(2) Exchange rate is the most important adjusting lever in international trade. A falling exchange rate can promote exports and curb imports.

Baidu encyclopedia-interest rate

Baidu encyclopedia-exchange rate