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Why does the shortage of foreign exchange lead to the rise of foreign exchange rate?
The relationship between supply and demand also applies to foreign exchange transactions.

The foreign exchange rate itself is a price comparison, and the shortage of foreign exchange will inevitably lead to an increase in the foreign exchange rate to balance the relationship between supply and demand.

Once the demand for foreign exchange decreases or the supply of foreign exchange increases, the exchange rate will fall.

This is the same as the situation of commodities. When the supply of goods is in short supply, will the price also rise?