CombinedThe exchange rateThe exchange rate refers to the exchange rate of the currency of the country that costs foreign currency, i.e. the ratio of one currency exchanging another currency. In international trade and finance, the exchange rate is a very important concept that affects the cost of import and export of enterprises and international payments.

In China, the exchange rate is issued by the Peoples Bank of China and usually adopts the exchange rate of the RMB to foreign currency. Chinas exchange rate adopts a floating exchange rate system, that is, the exchange rate is affected by market supply and demand relationships and policy interventions, and there are frequent fluctuations.

The fluctuations in the exchange rate affect both enterprise import and export operations and international payments. For example, if the exchange rate rises, the enterprise needs to spend more native currency when the exchange rate increases, thereby increasing the cost of import and reducing the profitability of the enterprise; and if the exchange rate decreases, the enterprise needs to spend less native currency when the exchange rate increases, thereby reducing the cost of import and increasing the profitability of the enterprise.

Therefore, enterprises need to rationally apply the exchange rate according to the market conditions and their own business conditions, adjust the exchange rate risk in a timely manner and protect their interests.At the same time, enterprises can also reduce the exchange costs or increase profits by using the foreign exchange market.

In short, the exchange rate is a very important concept in international trade and finance, has a direct impact on enterprise import and export costs and international payments and other aspects, enterprises need to rationally apply the exchange rate according to the market situation and their own business situation, timely adjust the exchange rate risk, protect their own interests.