The relationship between income and expenditure and exchange rate

{}Posted in2023/2/26 9:43:02 | 8Browse

The relationship between cashbackforexexnessrs.com">forexrebatescome Forex rebate for Exness expenditure and ForexrebateforExness rate As the currency exchange rate forexcashrebate the ratio of currency between the two countries, so the up and down fluctuations in the exchange rate will inevitably affect the ratio of goods between the two countries, thus affecting the import and export of goods between the two countries and the country see the trade balance in general, under certain conditions, a countrys In general, under certain conditions, a countrys currency exchange rate decreases, indicating that its currency depreciates, which will be conducive to the countrys expansion of exports, reduce imports and obtain a trade surplus; if a countrys currency appreciates, it will be conducive to imports and unfavorable to exports, which will make its trade deficit in the long run. From this cause-and-effect relationship, Southeast Asian countries will be at an obvious advantage in competing with Chinas mainland and Hong Kong for exports, because because the currencies of these countries have depreciated significantly, so their goods still have considerable profits in the international cashback forex even if the original selling price drops significantly; China can only let the RMB and Hong Kong dollar depreciate to ensure that Chinas mainland and Hong Kongs Export competitiveness is also a reflection of the relationship between exchange rates and imports and exports, balance of payments The current trade imbalance between Western countries has not changed with the emergence of the WTO and the progress of world economic integration, but rather continues to show signs of deterioration Japan has become the worlds largest trade surplus countries, while the United States has been a trade deficit for many years, and has become the worlds largest trade deficit countries this The development of trade imbalance will certainly lead to trade friction between countries, when the country concerned does not rule out the use of exchange rate tools to achieve the purpose of trade in November, there are already economists and financial speculators published papers, whoever is elected President of the United States in the future, are bound to solve the huge trade deficit in the U.S. economic growth has slowed down, the United States alone to improve the competitiveness of commodities to expand exports, the space to make up the deficit is not much. There is not much room to make up for the deficit, so the government is likely to use the strength of the dollar in the past two years to devalue the dollar so as to increase exports, and if so, the dollar may depreciate rapidly and sharply in the coming year In fact, this already has a precedent in 1994 the United States because of the huge trade deficit with Japan and asked The United States and the Japanese government launched several rounds of negotiations, but because of the Japanese governments tough attitude, negotiations have repeatedly broken down, the U.S. government has repeatedly said to use Super 301 to Japan to impose trade sanctions on the dollar / yen exchange rate is also affected, the market believes that the U.S. government can not achieve the purpose of the negotiations, it is likely to use exchange rate tools to confront, that is, let the yen appreciate Because Japan is an export-oriented country, in the countrys economy into a long-term recession and no signs of recovery, the continued growth of exports is important to the Japanese economy, and the appreciation of the yen is not conducive to Japanese exports Therefore, the U.S. governments monthly trade data released during the market focus of attention, once the U.S. deficit, especially to Japans deficit expansion, the market set off another round of enthusiasm to buy the yen in The process of sharp appreciation of the yen, the Central Bank of Japan continued to intervene in the market, and persuaded the U.S. Federal Reserve to assist, had given the yen some pressure on the long side, but then the market found that the Federal Reserve only used a very small amount of money into the market, more reflecting the policy orientation of the U.S. government, the yen continued to be sought after by the market, becoming the star of the currency market that year until the Japanese government finally had to open its own market to a limited extent, the dollar / yen as low as the level below 80 also worthy of investors attention, is that todays U.S. trade deficit is still very large, some time ago there have been international exchange rate analysts believe that the U.S. economy has declined, the United States is difficult to improve the competitiveness of domestic goods to expand exports, in the near future is likely to use exchange rate policy again, when the dollar exchange rate will have a sharp, a Therefore, the future U.S. trade data will be the focus of the currency market, or once the United States and Japan, Europes trade friction, the U.S. trade data is worthy of attention of foreign exchange speculators, because it will give us a very good direction when speculating in foreign exchange

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