First, if it is under direct quotation, then the local currency exchange rate will rise and the local currency will depreciate; If it is the indirect price method, then the local currency has appreciated.

Second, specifically:

1, in the expression of exchange rate, there are two main forms:

1) one is expressed by how much local currency the unit foreign currency is converted into, which is a direct quotation, for example, 100 USD =637.35 RMB in China. In this way, the rise of exchange rate means that the unit foreign currency is converted into more local currency, that is, the local currency depreciates;

2) The other is how much foreign currency the local currency is converted into, which is called indirect pricing method. In this way, the rise of foreign exchange rate means the appreciation of local currency.

2. The floating exchange rate of one currency means that of another currency. Under the floating exchange rate system, foreign exchange has become a special commodity in the international financial market, and the exchange rate has become the price for buying and selling this special commodity. Foreign exchange receipts and payments between countries due to the settlement of creditor's rights and debts. The total foreign exchange supply and demand has changed. This change is one of the main factors affecting exchange rate fluctuations. At present, most countries adopt direct pricing. Under the direct quotation, if a unit's foreign currency conversion cost currency is more than the previous period, it means that the foreign currency value rises or the local currency value falls, which is called the foreign exchange rate rise; On the other hand, if you want to use less local currency than before, you can convert it into the same amount of foreign currency, which means that the value of foreign currency drops or the value of local currency rises, which is called the decline of foreign exchange rate. That is, the depreciation of the local currency corresponds to the exchange rate rise, and the appreciation of the local currency corresponds to the exchange rate decline. Exchange rate rise is the opposite of exchange rate appreciation, and exchange rate decline is the opposite of exchange rate depreciation.

4. In the international market, foreign exchange is not a simple currency. They become actual commodities and will be affected by the relationship between supply and demand. When there are more buyers than sellers of a certain currency, the price of the currency will inevitably rise. On the contrary, when the seller's power prevails in the market, the currency price will inevitably fall. Whether the RMB depreciates or appreciates when the foreign exchange rate rises.

Third, the impact of exchange rate changes:

Influence of RMB appreciation and depreciation;

1, the positive impact of RMB appreciation:

1) Expand domestic consumers' demand for imported products, so that they can get more benefits. The most obvious change brought by the appreciation of RMB to domestic consumers is that the RMB in hand is "more valuable". If you study abroad or travel, you will spend less money than before; In other words, spending the same money can make you do more things than before. If you buy imported cars or other imported products, you will find that their prices have become "cheap" and ordinary people have gained more benefits.

2) Reduce the cost burden of imported energy and raw materials. China is a country lacking in resources. With the increase of international energy and raw material prices, domestic enterprises are bound to bear more and more heavy cost burden. If the RMB appreciates to a reasonable level, it will greatly reduce the burden of importing energy and raw materials in China, and enable domestic enterprises to reduce costs and enhance their competitiveness.

3) Using the "reverse mechanism" to promote the adjustment of China's industrial structure and improve China's position in the international division of labor. For a long time, China relied on the expansion of cheap labor-intensive products to implement the export-oriented strategy, which made the export structure not optimized for a long time and made China play the role of "world wage earners" in the international division of labor. Appropriate appreciation of RMB will help export enterprises to improve their technical level and product grade, thus promoting the adjustment of China's industrial structure and improving China's position in the international division of labor.

4) It helps to ease the relationship between China and its major trading partners. In view of the rapid development of China's export trade and the increasing trade surplus, China's major trading partners have repeatedly demanded RMB appreciation. In this regard, simply saying "no" seems encouraging, but it doesn't help. Because this will continue to worsen China's relations with them and set obstacles for China's foreign trade and economic development. In recent years, the sharp increase of anti-dumping cases against China is a very convincing evidence. A proper appreciation of RMB will not only help to ease the relationship between China and its major trading partners, reduce economic and trade disputes, but also help to establish a good international image of China as a big country. Fifth, it helps to reduce the threat of "foreign exchange holdings" to the independence of China's monetary policy. Since 1994, there has been a big "double surplus", which has led to a high foreign exchange reserve in China and seriously damaged the independence of China's monetary policy. Therefore, an appropriate appreciation of RMB can be closer to the market exchange rate level and alleviate the adverse effects of foreign exchange holdings.

2. The negative effects of RMB appreciation are:

1) will have an impact on China's export enterprises, especially labor-intensive enterprises. In the international market, the export price of China products, especially labor-intensive products, is far lower than that of similar products in other countries. The reason is that China's labor price is low, and the fierce domestic competition makes export enterprises compete to adopt the strategy of selling at a low price and paying no expense. Once the RMB appreciates, in order to keep the bottom line of RMB price unchanged, the price of China's export products in foreign currency will increase and weaken its price competitiveness; If the foreign currency price of export products remains unchanged, it will inevitably squeeze the profit space of export enterprises and have an impact on export enterprises, especially labor-intensive enterprises.

2) It is not conducive to the introduction of foreign direct investment in China. China is the country that attracts the most foreign direct investment in the world. At present, foreign-funded enterprises are playing a more and more obvious role in China's industry, agriculture, service industry and other fields, which has a great impact on promoting technological progress, increasing employment and expanding exports, thus promoting the development of the entire national economy. The appreciation of RMB will not have a substantial impact on foreign investors who have already invested in China, but it will have a negative impact on foreign investors who are about to invest in China, because it will increase their investment costs. In this case, they may transfer their investment to other developing countries.

3) Increase domestic employment pressure. The impact of RMB appreciation on export enterprises and overseas direct investment will eventually be reflected in employment. Because most of China's export products are labor-intensive products, blocked exports will inevitably increase employment pressure; Foreign-funded enterprises are one of the departments that provide the most new jobs, and the slowdown of foreign investment growth will make the domestic employment situation more severe.

4) Affect the stability of the financial market. If the RMB appreciates, a large number of short-term speculative funds abroad will seize the opportunity to speculate on the RMB exchange rate. Under the condition that the development of China's financial market is not perfect, it will easily lead to financial and monetary crisis. In addition, the appreciation of RMB will further increase the actual amount of existing non-performing assets of banks in US dollars, which is not conducive to the reform of the entire banking industry and the adjustment of debt structure. -that is, the "hot money" now.