The foreign exchange rate is the price of the domestic currency expressed in another country's currency, and its level is ultimately determined by the foreign exchange market. Foreign exchange transactions are generally concentrated in financial institutions such as commercial banks. The purpose of buying and selling foreign exchange is to pursue profits. The way is to buy cheap and sell expensive, and earn the bid-ask difference. The exchange rate at which they buy foreign exchange is the buying exchange rate, also known as the buying price. The exchange rate of selling foreign exchange is called selling exchange rate, also known as selling price.

If the exchange rate rises, such as RMB against USD, the latest exchange rate is 6.6049, which means that 1 USD can be exchanged for 6 RMB 1 steel shovels. If the exchange rate rises to 1:7, it may be that the US dollar has appreciated or the RMB has depreciated! The exchange rate change caused by this is because the exchange rate belongs to the conversion of currency to currency! It's like an apple for two pears, but there are more people selling apples, and one pear apple has depreciated 1 apple. It is also possible that the poor pear harvest this year has made pears valuable! This is how money is influenced by external factors, which will change the currency index and affect the exchange rate! More foreign exchange rate or related knowledge can be learned from Huijin Finance!