The exchange rate will change because of interest rates, inflation, national politics and national economies. The exchange rate is determined by the foreign exchange market. The foreign exchange market is open to different types of buyers and sellers to conduct extensive and continuous currency transactions (foreign exchange transactions are conducted 24 hours a day except weekends, from 8: 15 GMT on Sunday to 22:00 GMT on Friday).

Extended data:

The influence of exchange rate on non-trade balance;

1. Impact on the balance of intangible trade: the exchange rate of a country's currency declines, the purchasing power of foreign currency increases, and goods and services are cheap. The decline in the purchasing power of local currency and the increase in the prices of foreign goods and services are conducive to improving the balance of payments of tourism and other services in the country.

2. Impact on unilateral transfer income: If a country's currency exchange rate falls, if domestic prices remain unchanged or rise relatively slowly, it will have an adverse impact on the country's unilateral transfer income and expenditure.

3. Impact on capital inflow and outflow: Exchange rate has little impact on long-term capital flow. In the short term, the exchange rate depreciates and capital flows out; The appreciation of exchange rate is beneficial to capital inflow.

4. Impact on official reserves:

The change of domestic currency directly affects the increase or decrease of domestic foreign exchange reserves through capital transfer and the increase or decrease of import trade volume.

(2) The exchange rate of reserve currency falls, which makes the real value of foreign exchange reserves of countries that maintain reserve currency suffer losses. Reserve countries have reduced their debt burden due to currency devaluation and benefited from it.

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