1, local currency exchange rate
It is expressed by the amount of foreign currency that can be converted by the unit's local currency, which is called the local currency exchange rate. It is called RMB exchange rate in China, that is, the RMB price expressed in foreign currency, and its formula is 100 @= X X foreign currency.
When other factors remain unchanged, the RMB per unit amount can be exchanged for more foreign currencies, which means that the RMB exchange rate rises, the RMB appreciates relative to a foreign currency, the foreign currency depreciates and the foreign exchange rate falls. At this time, it is beneficial to China's imports but not to its exports.
On the other hand, if the unit amount of RMB can be exchanged for a small amount of foreign currency, it means that the RMB exchange rate drops and the RMB depreciates relative to a foreign currency, while the foreign currency appreciates and the foreign exchange rate rises, which is beneficial to China's exports but not to imports.
2. Foreign exchange rate
The foreign exchange rate is expressed by how much foreign currency with a large unit sales volume can be converted into domestic currency. China usually adopts 100 foreign currency as the standard and converts it into a certain amount of RMB, that is, the price of a foreign currency is expressed in RMB, and its formula is 100 foreign currency = X.
When 100 unit of foreign currency can be exchanged for more RMB, the foreign exchange rate will rise, the foreign currency will appreciate relative to RMB, and the RMB will depreciate, that is, the price of foreign currency expressed in RMB will rise, which is beneficial to China's exports but not to imports. On the other hand, it shows that the decline of foreign exchange rate, the depreciation of foreign currency against RMB and the appreciation of RMB are beneficial to China's imports and unfavorable to its exports.
Extended data
China's exchange rate system
1, single system
Single floating exchange rate system (1949-1952), single fixed exchange rate system (1953-1972) and single floating exchange rate system calculated by a basket of currencies in the Bretton Woods system (1973-/kloc-)
2. Dual-track system
The official exchange rate and the internal settlement price of trade foreign exchange (1981-kloc-0/984) coexist, and the official exchange rate and the foreign exchange swap price (1985-1993) coexist.
3. Parallel system
The official exchange rate of RMB and the foreign exchange swap price were formally merged (1994 -2005)
4. Current system
July-2, 20051:The central bank announced that it would cancel the previous monetary policy of pegging to a single dollar and implement a floating exchange rate system based on market supply and demand with reference to a basket of currencies. On the same day, the official exchange rate of the US dollar against RMB was adjusted from 8.27 to 8. 1 1, and it has been continuously adjusted according to market conditions since then.