Foreign exchange fundamentals key words - balance of payments

Balance of payments The law of forex broker rebate program rate changes cashback forex governed by the state of the balance of payments and forexrebatebestflation, so they are the basic factors that determine exchange rate changes, interest rate factors and exchange rate policy can only play a subordinate role, that is, to contribute to or weaken the role played by the basic factors a countrys fiscal Monetary policy plays a decisive role in the movement of the exchange rate Here is only a brief analysis from the perspective of the impact of the balance of payments on the exchange rate balance of payments is a summary of all autorebateforex economic and financial relations of a countrys residents a countrys balance of payments reflects the countrys economic position in the international arena, but also affects the countrys macro and microeconomic operations the impact of the balance of payments is ultimately the foreign exchange Supply and demand on the exchange rate by a certain economic transactions (such as exports) or capital transactions (such as foreigners to the countrys investment) caused by the foreign exchange income because foreign exchange is usually not free to circulate in the domestic market, so you need to exchange foreign forexbrokerrebateprogram into domestic currency to put into domestic circulation which forms the foreign exchange market foreign exchange supply and because of a certain economic transactions (such as imports) or capital transactions (to foreign investment) is caused the foreign exchange expenditure because to exchange the domestic currency into foreign currency to meet their respective economic needs, in the foreign exchange market will produce the need for foreign exchange to these transactions together, all recorded in the balance of payments statistics, it constitutes a countrys foreign exchange balance if foreign exchange income is greater than expenditure, the supply of foreign exchange increased; if foreign exchange expenditure is greater than income, the demand for foreign exchange increased the supply of foreign exchange Increase, in the case of unchanged demand, directly prompted by the price of foreign exchange down, the value of the local currency will rise accordingly; when the demand for foreign exchange increases, in the case of unchanged supply, directly prompted by the price of foreign exchange up, the value of the local currency will fall accordingly a countrys balance of payments will lead to fluctuations in its local currency exchange rate balance of payments is a summary of all foreign economic and financial relations of a countrys residents A countrys balance of payments reflects the countrys economic position in the international arena, but also affects the countrys macro and microeconomic operations The impact of the balance of payments boils down to the supply and demand of foreign currency on the exchange rate by a certain economic transaction (such as exports) or capital transaction (such as foreigners to the countrys investment) caused by the income of foreign currency Since foreign currency is usually not free to circulate in the national market, so it needs to be converted into the local currency exchange rate. So need to exchange foreign currency into domestic currency in order to put into domestic circulation which forms the foreign exchange market foreign exchange supply and due to a certain economic transactions (such as imports) or capital transactions (to foreign investment) is caused by the foreign exchange expenditure because to exchange the domestic currency into foreign currency in order to meet the respective economic The combination of these transactions, all recorded in the balance of payments statistics, will constitute a countrys foreign exchange Income and expenditure situation if foreign exchange income is greater than expenditure, the supply of foreign exchange increases; if foreign exchange expenditure is greater than income, the demand for foreign exchange increases the supply of foreign exchange increases, in the case of unchanged demand, directly prompted by the price of foreign exchange declines, the value of the local currency rises accordingly; when the demand for foreign exchange increases, in the case of unchanged supply, directly prompted by the price of foreign exchange rises, the value of the local currency rises accordingly down need, in the foreign exchange market will produce the need for foreign exchange