The exchange rate is the exchange rate between two currencies. When the exchange rate falls, it means that the same amount of local currency can be exchanged for less foreign currency, and more local currency is needed to exchange for a certain amount of foreign currency. It is the performance of devaluation of local currency and appreciation of foreign currency.

The devaluation of the local currency will benefit the country's exports. Foreign buyers can buy more domestic goods with less foreign currency, but it will also increase the import cost, because paying the same amount of foreign currency requires more local currency. The change of exchange rate not only affects international trade, but also affects a country's economic policy and international competitiveness.