The balance of payments deficit will lead to a decrease in foreign exchange supply and an increase in demand in the domestic foreign exchange market, thus causing the exchange rate of foreign exchange to rise and the exchange rate of local currency to fall.

judging from the causes of the balance of payments deficit, if the balance of payments deficit is caused by the current account deficit, it will inevitably lead to the reduction of employment opportunities in export-related departments and the economic downturn. If the balance of payments deficit is caused by the balance of payments deficit with assets, it means a large amount of capital outflow, tight domestic capital supply, pushing up the interest rate level, leading to an increase in unemployment and economic downturn.

The difference is that the expenditure is greater than the income, which is equivalent to the loss of foreign exchange (most of it has been spent). When things are scarce, the shortage of foreign exchange will appreciate. For example, one dollar originally needed 7 yuan money, but now it needs 8 yuan money. Isn't this the devaluation of the local currency?

this is the market law that leads to the devaluation of the local currency, and it stems from the demand for foreign currency.

appreciation doesn't mean that it will go up as soon as it goes up. It turns out that 1 kg of rice in 3 yuan, you appreciate, and 1 kg of rice in 1 yuan, who will grow rice? The unstable currency will cause economic chaos and lead to a series of problems.

the balance of payments deficit is one of the common bottlenecks in developing countries. Balance of payments deficit, also known as balance of payments deficit, means that a country's expenditure on balance of payments is greater than its income. The balance of payments deficit will lead to the decrease of foreign exchange supply and the increase of demand in the domestic foreign exchange market, thus making the exchange rate of foreign exchange rise and the exchange rate of local currency fall. If the government takes measures to intervene, that is, selling foreign currency and buying local currency, the government does not have enough foreign exchange reserves, which will further lead to the depreciation of the local currency. Government intervention will directly lead to the reduction of domestic money supply, and the reduction of money supply will lead to the rise of domestic interest rates, leading to economic decline and increased unemployment.