The influence of currency depreciation on the scale of a country's foreign exchange reserves; The exchange rate change of reserve currency will affect the real value of a country's foreign exchange reserves.
2. The impact of exchange rate changes on a country's domestic employment, national income and resource allocation.
When a country's local currency exchange rate drops and the foreign exchange rate rises, it is conducive to promoting its exports, curbing imports, and making its export industries and import substitution industries flourish, thus accelerating the development of the entire national economy, increasing domestic employment opportunities and increasing national income.
3. The impact of exchange rate changes on the world economy. The exchange rate changes of small countries have only a slight impact on the economies of their trading partners, while the exchange rate changes of freely convertible currencies in developed countries have a greater or even greater impact on the international economy.
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(1) According to the evolution of the international monetary system, there are fixed exchange rates and floating exchange rates.
1, fixed exchange rate. Refers to the exchange rate set and announced by the government, which can only float within a certain range.
2. Floating exchange rate. Refers to the exchange rate determined by market supply and demand. Its fluctuation is basically free, and a country's money market has no obligation to maintain the exchange rate level in principle, but it can intervene when necessary.
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