A country's exchange rate rises, that is, the local currency appreciates and the foreign currency depreciates; When a country's exchange rate falls, its local currency depreciates and its foreign currency appreciates. Example: USD 65,438+0 was originally RMB 65,438+00, and now USD 65,438+0 is 5 yuan RMB. Explain that the dollar depreciates and the exchange rate of the dollar declines; With the appreciation of RMB, the exchange rate of RMB has increased.

Advantages and disadvantages of RMB appreciation: 1, which is favorable for imports and unfavorable for exports.

2. It is not conducive to attracting foreign investment.

3, is conducive to reducing the pressure of foreign debt.

It will devalue China's foreign exchange reserves.

5, is not conducive to employment, is not conducive to expanding domestic demand.

Depreciation is the opposite.