The change in exchange rates will have an important impact on the international income and expenditure of one country, the domestic economic and international economic relations.Generally speaking, countries with exchange rate changes have a greater impact on countries with open economy, higher degree of foreign dependence, and loose foreign exchange control. Countries with strict foreign exchange control and low degree of dependence have a small impact.This article, LTG GoldRock, will share with you the impact of exchange rate changes on the international revenue and expenditure of one country ~
The exchange rate changes have a certain impact on the international revenue and expenditure in import and export, non -trade revenue and expenditure, international capital flow, and foreign exchange reserves.
1. The impact of exchange rate changes on import and export trade
The change in exchange rates will cause changes in the price of import and export commodities, which will affect the import and export trade of a country.If a certain currency exchange rate falls or the currency depreciates, the price of export goods for foreign currencies for currency issuers is cheaper than before, thereby enhancing the international competitiveness of their products and conducive to export.The price is higher than before, and to a certain extent, it will inhibit the needs of consumers in the country for imported goods, thereby reducing imports.Conversely, if a certain currency exchange rate rises or the currency appreciates, it will happen opposite to the above. It will not only weaken the international competitiveness of the goods of the country's goods, but also stimulate the demand for imported goods in the country, increase importsThe role.The impact of exchange rate changes on import and export trade is restricted by the supply and demand of import and export goods, and there is a period of time stagnation.
2. The impact of exchange rate changes on non -trade revenue and expenditure
Under the circumstances of other conditions, a certain currency exchange rate falls or the depreciation of the currency is equivalent to rising foreign currency prices expressed in the local currency.It's relatively enhanced.This has increased attraction to foreign tourists and promoted the increase in domestic tourism and other non -trade revenue.Conversely, after the depreciation of this currency, foreign tourism and other labor expenditures have been relatively improved for their residents, thereby curbing foreign labor expenditure in their country.It should be seen that the depreciation of the local currency may adversely affect the unilateral transfer income and expenditure of one country.Taking the revenue of foreign countries' remittances as an example, after the depreciation of the local currency, the local currency can be exchanged by the units and foreign currency. For the diaspora, the cost of the family represented by the local currency only needs to be paid with less foreign., To reduce the number of foreign currency overseas Chinese exchange in the country.
3. The impact of exchange rate changes on the flow of international capital
Capital flow, especially the flow of short -term capital, has the most keen and rapid response to exchange rate changes.When the currency exchange rate falls or the currency depreciates, in order to prevent the loss of the currency blink, the capital issuer often fled abroad: the international short -term capital or other investment in the country's bank will also be transferred to other countries to go to other countries to so that in order to go to other countries, soPrevent losses to prevent currency depreciation.This will not only reduce the scale of domestic investment in the country, but also lead to an increase in foreign expenditures in the country, which worsen the country's international revenue and expenditure.Conversely, if the foreign city expressed by the local currency declines, that is, the appreciation of the city, the impact on the flow of capital is the opposite of the above situation, which will promote the increase in domestic investment in the country and improve the country's international revenue and expenditure.
4. The impact of exchange rate changes on foreign exchange reserves
Gold, foreign exchange, reserve positions in the International Monetary Fund, and special withdrawal rights are the basic content of international reserves, of which foreign exchange accounts for the main position.
The rise or decrease of exchange rates as reserve currencies will directly affect changes in the actual value of a country's reserve assets.If the exchange rate of a certain reserve currency falls, the country holding this currency as a reserve will suffer losses, and countries that issue such reserve currencies have passed on the loss of currency depreciation and reduced the debt burden.The exchange rate of reserve currency rises, and the country holding this currency as a reserve will make a profit.Due to the different proportion of foreign exchange reserves in all countries in the world, foreign exchange reserves of developed countries are about 75%of the entire reserves, and foreign exchange reserves of developing countries account for more than 90%of the entire reserves.The exchange rate falls, and developing countries will suffer greater losses than developed countries.
In addition, the instability of the exchange rate will also affect the status of reserve currency.For example, after the British pound and the US dollar in the 1970s after the Second World War, due to the decline in exchange rates and long -term international deficit, the pound lost its status of reserve currency, and the status of the US dollar as reserve currency was also severely weakened.It turned out that the currency linked to the US dollar or the international economic transactions that were denominated in the US dollar were changed to linked to the special withdrawal right or the price of special withdrawal rights.At that time, the Federal German (West Germany) entered, Japan and Switzerland had a good income and expenditure conditions. The currency was strong, and the exchange rate had a rise in the rise.The proportion of these currencies in foreign exchange reserves in various countries is also increasing.
