The exchange rate declines, that is, the local currency appreciates and trade exports decrease. However, what foreign investors are interested in is the expectation of local currency appreciation. That is to say, when the local currency begins or will appreciate, foreign capital will enter the country to conduct mergers and acquisitions of enterprise assets or equity, and increase foreign investment in the country's real estate market and stock exchange market, thus obtaining double benefits of asset appreciation and local currency appreciation.

At the same time, the decrease in exports will lead to the closure of a large number of ethnic manufacturing enterprises, resulting in idle funds, coupled with the entry of foreign capital, so the liquidity of the domestic capital market will increase, which will lead to inflation. In order to curb inflation, the bank decided to raise interest rates, which will also promote the entry of foreign capital.