That is, the dollar depreciates, the renminbi definitely appreciates, the dollar depreciates, the dollar exchange rate falls, the renminbi appreciates, and the renminbi exchange rate rises.
Foreign exchange is a means of payment expressed in foreign currency for international settlement. Foreign currency is not necessarily foreign exchange, only foreign currency used for international settlement is foreign exchange. Exchange rate, also called exchange rate, is the exchange rate between two currencies.
Extended data
Foreign exchange trading refers to the way of buying one currency in a pair of currency combinations and selling the other currency at the same time. The exchange rates of various currencies in the international market fluctuate frequently, and they are traded in the form of currency pairs, such as Euro/USD or USD/JPY.
The main advantage of the foreign exchange trading market lies in its high transparency. Due to the huge transaction volume, the main funds (such as government foreign exchange reserves, multinational consortium fund exchange, foreign exchange speculators fund operation, etc. ) has a very limited impact on market exchange rate changes.
On the other hand, from the fundamental analysis of exchange rate fluctuations, it is usually important data released by governments (such as GDP and GNP central bank interest rates), speeches by senior government officials, or news released by international organizations (such as the European Central Bank) that can have a greater impact.
There is no specific place in the foreign exchange market, and there is no central exchange. All transactions are conducted between banks through the Internet. Any financial institution, government or individual in the world can participate in trading 24 hours a day.
The foreign exchange market runs continuously for 24 hours, rising and falling, and never stops. Its trend is like the transition between day and night on the earth, and it goes on and on. Accordingly, the market trend of exchange rate is divided into four stages: bottoming, rising, topping and falling.
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