1, the real exchange rate depreciation is the reason for the currency depreciation.

In direct quotation, exchange rate depreciation = exchange rate rise = currency depreciation.

Exchange rate means direct price and indirect price, and direct price means price expressed in local currency. Most countries in the world use direct quotation, China and direct quotation. As far as the concept of exchange rate is concerned, one currency means the price of another currency, which is just a number. We can understand it as price. For example, 1 USD =7 RMB, 7 is the exchange rate, also called foreign exchange rate, and 7 to 8 is the exchange rate rise. In direct quotation, the exchange rate rises.

2. Adjusting interest rate is an economic means of national macro-control. Currency devaluation will lead to inflation, which in turn will lead to price increase, reduce people's purchasing power, dampen consumers' enthusiasm, which is not conducive to market development. Generally, the government will raise interest rates to attract people to deposit money in banks, reduce the circulation of money in the market and withdraw funds.

Second, why does currency devaluation lead to an increase in interest rates?

The depreciation of the local currency will lead to an increase in interest rates, which will be fully reflected in the open money market. Take foreign currency and Japanese yen as examples here. When the yen depreciates, for example, at the beginning of the year, the exchange rate between foreign currency and yen is 1: 100, and at the end of the year, the yen depreciates to1/0 yen/foreign currency. When the foreign exchange rate is 2%, what is the interest rate of Japanese yen to reach the spread balance? The foreign currency is 6,543,800+0,000, and the principal and interest at the end of the year is 6,543,800+0,200. Replacement at the beginning of the year 165438+ million yen. Assuming that the interest rate is new%,110 (1x%)/120 =1.02 is required; The calculated yen interest rate should reach 1 1.27%. That is, when the foreign currency yen exchange rate is 1: 1 10, the yen can be the same as the foreign currency. However, when the Japanese yen depreciates to 120, it is necessary to raise the interest rate to 1 1.27% to eliminate the spread. However, an independent monetary policy system can still maintain certain limitations. Take Indian Rupee as an example. India is a currency with the characteristics of currency independence and regional liquidity. When the foreign rupee changed from 1:75 at the beginning of the year to 1:80, the foreign rupee interest rate was still 2%. In this way, in the open market, the interest rate of the rupee must reach 8.8% to balance the spread. But how does the interest rate of the rupee balance at 5%? First, by controlling the desired currency flow, such as controlling the currency outflow exceeding 1 100 million dollars, limiting the outflow of corporate funds and controlling the flight of private funds; Second, use foreign exchange reserves to adjust the offshore market exchange rate and keep the exchange rate relatively stable. Buy back central bank bills through the foreign exchange market to reduce the volume of overseas markets. In a word, whether opening the foreign exchange market or an independent monetary policy, it is necessary to eliminate speculation when there is a spread. The open market achieves balance through exchange rate and interest rate, while the independent market needs more control means to fill the gap of interest rate difference besides the established interest rate and exchange rate.

3. Why does the exchange rate of a currency depreciate and the corresponding deposit and loan interest rate rise? !

It feels good to be supportive.

4. Why does the exchange rate of a currency depreciate and the corresponding deposit and loan interest rate rise? !

Investigate its reason.

In direct quotation, exchange rate depreciation = exchange rate.

The exchange rate refers to the direct bid price and the unit price expressed in currency. Most countries in the world use direct quotation, while China uses direct quotation. As far as the concept of exchange rate is concerned, it is an example, just a number. We have 1 USD =7 RMB, 7 is the exchange rate, also called foreign exchange rate, and 7 to 8 is the exchange rate rise. Under direct quotation, exchange rate rise = exchange rate depreciation = local currency depreciation.

2. Adjusting interest rate is an economic means of national macro-control. Commodities are expanding, and inflation will lead to rising prices, reduce people's purchasing power, discourage consumers, which is not conducive to market development. Generally, the government will raise interest rates to attract people to deposit money in banks, reduce the circulation of money in the market and withdraw funds.