Forward foreign exchange: that is, making an appointment to buy and sell foreign exchange, that is, the buyer and the seller sign a contract to stipulate the currency, amount, exchange rate and future delivery time of foreign exchange, and then the seller meets and the buyer pays according to the contract.
Ratchet effect: Also known as wheel-building effect, it means that people's consumption habits are irreversible after they are formed, that is, it is easy to adjust upwards but difficult to adjust downwards. Especially in the short term, consumption is irreversible and the habitual effect is great.
Arbitrage: refers to foreign exchange transactions that use different foreign exchange markets, different currencies, different delivery times and differences in exchange rates and interest rates of some currencies to buy from low-priced parties and sell from high-priced parties to earn profits.
Exchange rate system: refers to the relationship and interaction between exchange rate fluctuations and changes in foreign exchange supply and demand in foreign exchange market transactions. It is one of the automatic adjustment mechanisms of international balance of payments imbalance.
6 "Dirty" floating: Dirty interactive exchange rate system (or managed floating exchange rate system) refers to the exchange rate system where the official exchange rate target is not open.
7 floating exchange rate system: refers to the exchange rate of a country's currency changes according to the supply and demand of market currency, allowing it to float freely. In principle, the government and the central bank do not impose restrictions or assume obligations to maintain exchange rate stability. This exchange rate system is called floating exchange rate system.