3 thoughts on “jewelry imports wholesale How is the exchange rate calculated?”
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gemstone jewelry wholesale china 1. What is foreign exchange rate
If foreign exchange rate is the ratio, comparison or price of the currency of one country into the currency of another country; it can also be said that it is the "" price". Because international trade and non -trade exchanges, countries need to handle international settlement, so the currency of a country and currencies in other countries have a exchange rate.
The currency of the two countries, first determine which country's currency as the standard. Due to the different standards, there are two methods: direct price method and indirect price method.
The foreign currency of 1 unit or 100 units as standards, converted into a certain amount of domestic currency, called the direct price method. Under the direct price method, the amount of foreign currencies is fixed, and the amount of the country's currency changes with the changes in foreign currencies or domestic currencies. Essence my country's indirect price method is adopted.
The national currency of 1 unit or L00 unit is used as a standard and converted into a certain number of foreign currencies, called indirect price method. Under the indirect price method, the amount of the country's currency is fixed, and the amount of foreign currencies changes with the changes in the value of their national currencies or foreign currencies. Britain and the United States are countries that use indirect price marks.
This level of exchange rate fixed value is not only related to the competitiveness of the export of commodity trade, service trade, and technology trade in the domestic and foreign markets, but also related to the international relative of a country's financial assets The cost of yield and direct investment. Therefore, the exchange rate is one of the important economic leverage in international economic exchanges.
. How does the exchange rate on the international financial market determine
Since the exchange rate is so important, how is the exchange rate on the international financial market determined? Generally speaking, The foreign exchange rate on the international financial market is determined by the actual social purchasing power parity represented by the one country's currency and the supply and demand relationship of the foreign exchange.
In the circulation of banknotes, although the expression form of the exchange rate is the exchange rate between the two countries and the currency of several countries, the basis of its connotation or value decision is essentially reflecting the commodities of different countries in different countries. Relatively prices, that is, the purchasing power parity of domestic and foreign prices is the basis for the fixed value of the exchange rate. Not the relative price of currency itself in different countries, because banknotes themselves are worthless.
In real life, the exchange rate is also affected by the foreign exchange supply and demand, the status of national defense and expenditure, and monetary policy. For example, if other conditions remain unchanged, when the demand for a foreign exchange (such as the US dollar) in the international financial market increases, its exchange rate (such as the US dollar price) will rise, and otherwise it will decline. At the same time, when the international income and expenditure of a country appears, it means that when the country's foreign exchange supply is increased, other conditions remain unchanged, and the foreign exchange price may decline, and the country's currency may be appreciated. Conversely, the deficit of the international income and expenditure in one country will appreciate the foreign exchange price, and the foreign exchange price will be appreciated, and the currency exchange rate will depreciate.
It what affects the changes in exchange rates in real life, there is also a country's monetary policy, interest rate policy and price policy. For example, when a country's banknote is issued too much, it leads to inflation and causes prices to rise. As a result, the overseas depreciation of the country's currency and the rise in foreign exchange prices will be increased. For another example, when a country increases interest rates, it can not only promote the inflow of foreign capital, but also lead to an increase in the demand for currency in the country, thereby rising the national currency price; on the contrary, the increase in interest rates will lead to the inflow of funds. The exchange rate may depreciate. In addition, changes in political situations and various speculative activities will also affect changes in exchange rates.
. What are the major exchange rate systems in the world
Historically, there are two main exchange rate systems in the world, namely the fixed exchange rate system and floating exchange rate system.
1. The fixed exchange rate system
The fixed exchange rate system refers to the ratio of currencies in one country (region) currency exchanged by other countries (regions). Throughout the history of the international currency system, the fixed exchange rate system can be divided into a fixed exchange rate system and gold under the golden standard system -the US dollar standard system.
Under the fixed exchange rate system of the golden -based place, each currency unit has a legal gold content. The comparison price between the two countries is the ratio of two currency gold content, which is the standard for determining the currency exchange rate. For example, before 1929, the gold coin content stipulated in the United Kingdom was 113.0016 curry (GRAIN), and the US dollar gold coin contained in the United States was 23.22 Curin (GRAIN), the ratio of the pound to the US dollar was 113.0016 / 23.22 = 4.8665, which is 1. The pound is equal to $ 4.8665. In the foreign exchange market, the range of fluctuations in the exchange rate is roughly based on the gold conveying point as the boundary, so it has relatively stability. With the disintegration of the golden standard system, this fixed exchange rate system no longer exists.
In the collapse of the Bretton Forest system in 1973 after the Second World War, the gold -US dollar system has been implemented in the world. It is characterized by a dual -hook system, that is, the US dollar linked to the gold, the currency of various countries is linked to the US dollar, which maintains a fixed parity with the US dollar. The specific regulations are: (1) 1 USD banknotes with a gold content of 0.888671 grams. Other colleagues also correspond to the gold content of the country's currency. For example, the gold content of 1 pound of pounds of banknotes in 1946 is 3.58134 grams. The basis for decision. For example, the exchange rate of the British pound and the US dollar is 3.58134 / 0.888671 = 4.03, that is, 1 pound is equal to $ 4.03. (2) The fluctuation rate of the exchange rate of members of the International Monetary Fund in the foreign exchange market shall not exceed 1 % of its currency parity up and down limit. Otherwise, in order to maintain the stability of the exchange rate, other member states have the responsibility to intervene.
2. The floating exchange rate system
The floating exchange rate system refers to a exchange rate system that can freely fluctuate in the foreign exchange market according to the supply and demand relationship in the foreign exchange market. Under this exchange rate system, the fluctuation rate of the exchange rate of various countries is not limited and does not assume the obligation to maintain the floating range. The imbalance of international revenue and expenditure is self -regulated through exchange rate changes. The floating exchange rate system has a long history. In the Golden System, Britain, the United States, France, and some developing countries have implemented a floating exchange rate system. Since entering the 1970s, with the development of global inflation, the floating rate of exchange rates in various countries has become more flexible and complicated. In August 1971, the floating exchange rate system began to implement the major currency of the international currency. By March 1973, the floating exchange rate system was fully publicly implemented. The main floating methods that have existed a few days ago are: free floating methods that are free and spontaneous adjustment in accordance with the supply and demand of the foreign exchange market, the government's intervention of the foreign exchange market, and the management floating method of the European Community Regional Currency Group. There is also a separate floating method that does not take joint operations with any country.
1994 Before January 1, 1994, the RMB exchange rate was formulated, adjusted and announced by the state according to the needs of economic development. After January 1, 1994, my country implemented a new foreign exchange management system. The basic decisive factor of the RMB exchange rate was the supply and demand status of the foreign exchange market, while being managed and regulated by the central bank. But the marketization of the RMB exchange rate is not high.
sterling silver wholesale jewelry nyc The exchange rate is also known as exchange rate, foreign exchange brand price or foreign exchange market, that is, foreign exchange sale price. It is the relatively comparison price of currency between the two countries, that is, the price of the currency of the other country with the currency of one country. The exchange rate has different formulation methods under different currency systems. Under the standard of gold, due to the different currency content of different countries, the comparison of the gold content of the two currencies (also known as the currency price) is the basis of the foreign exchange exchange rate. Under the non -cash credit currency system, the exchange rate changes are restricted by the relationship between foreign exchange supply and demand. When a certain currency supply is required, the exchange rate of this currency will rise. When a certain currency supply is too required, its exchange rate will decline.
bulk wholesale costume jewelry distributors /.GSP Everbright Bank's RMB foreign exchange brand price list, if you update every hour, if you want to use foreign currency to replace the RMB, you can see the purchase price; otherwise
gemstone jewelry wholesale china 1. What is foreign exchange rate
If foreign exchange rate is the ratio, comparison or price of the currency of one country into the currency of another country; it can also be said that it is the "" price". Because international trade and non -trade exchanges, countries need to handle international settlement, so the currency of a country and currencies in other countries have a exchange rate.
The currency of the two countries, first determine which country's currency as the standard. Due to the different standards, there are two methods: direct price method and indirect price method.
The foreign currency of 1 unit or 100 units as standards, converted into a certain amount of domestic currency, called the direct price method. Under the direct price method, the amount of foreign currencies is fixed, and the amount of the country's currency changes with the changes in foreign currencies or domestic currencies. Essence my country's indirect price method is adopted.
The national currency of 1 unit or L00 unit is used as a standard and converted into a certain number of foreign currencies, called indirect price method. Under the indirect price method, the amount of the country's currency is fixed, and the amount of foreign currencies changes with the changes in the value of their national currencies or foreign currencies. Britain and the United States are countries that use indirect price marks.
This level of exchange rate fixed value is not only related to the competitiveness of the export of commodity trade, service trade, and technology trade in the domestic and foreign markets, but also related to the international relative of a country's financial assets The cost of yield and direct investment. Therefore, the exchange rate is one of the important economic leverage in international economic exchanges.
. How does the exchange rate on the international financial market determine
Since the exchange rate is so important, how is the exchange rate on the international financial market determined? Generally speaking, The foreign exchange rate on the international financial market is determined by the actual social purchasing power parity represented by the one country's currency and the supply and demand relationship of the foreign exchange.
In the circulation of banknotes, although the expression form of the exchange rate is the exchange rate between the two countries and the currency of several countries, the basis of its connotation or value decision is essentially reflecting the commodities of different countries in different countries. Relatively prices, that is, the purchasing power parity of domestic and foreign prices is the basis for the fixed value of the exchange rate. Not the relative price of currency itself in different countries, because banknotes themselves are worthless.
In real life, the exchange rate is also affected by the foreign exchange supply and demand, the status of national defense and expenditure, and monetary policy. For example, if other conditions remain unchanged, when the demand for a foreign exchange (such as the US dollar) in the international financial market increases, its exchange rate (such as the US dollar price) will rise, and otherwise it will decline. At the same time, when the international income and expenditure of a country appears, it means that when the country's foreign exchange supply is increased, other conditions remain unchanged, and the foreign exchange price may decline, and the country's currency may be appreciated. Conversely, the deficit of the international income and expenditure in one country will appreciate the foreign exchange price, and the foreign exchange price will be appreciated, and the currency exchange rate will depreciate.
It what affects the changes in exchange rates in real life, there is also a country's monetary policy, interest rate policy and price policy. For example, when a country's banknote is issued too much, it leads to inflation and causes prices to rise. As a result, the overseas depreciation of the country's currency and the rise in foreign exchange prices will be increased. For another example, when a country increases interest rates, it can not only promote the inflow of foreign capital, but also lead to an increase in the demand for currency in the country, thereby rising the national currency price; on the contrary, the increase in interest rates will lead to the inflow of funds. The exchange rate may depreciate. In addition, changes in political situations and various speculative activities will also affect changes in exchange rates.
. What are the major exchange rate systems in the world
Historically, there are two main exchange rate systems in the world, namely the fixed exchange rate system and floating exchange rate system.
1. The fixed exchange rate system
The fixed exchange rate system refers to the ratio of currencies in one country (region) currency exchanged by other countries (regions). Throughout the history of the international currency system, the fixed exchange rate system can be divided into a fixed exchange rate system and gold under the golden standard system -the US dollar standard system.
Under the fixed exchange rate system of the golden -based place, each currency unit has a legal gold content. The comparison price between the two countries is the ratio of two currency gold content, which is the standard for determining the currency exchange rate. For example, before 1929, the gold coin content stipulated in the United Kingdom was 113.0016 curry (GRAIN), and the US dollar gold coin contained in the United States was 23.22 Curin (GRAIN), the ratio of the pound to the US dollar was 113.0016 / 23.22 = 4.8665, which is 1. The pound is equal to $ 4.8665. In the foreign exchange market, the range of fluctuations in the exchange rate is roughly based on the gold conveying point as the boundary, so it has relatively stability. With the disintegration of the golden standard system, this fixed exchange rate system no longer exists.
In the collapse of the Bretton Forest system in 1973 after the Second World War, the gold -US dollar system has been implemented in the world. It is characterized by a dual -hook system, that is, the US dollar linked to the gold, the currency of various countries is linked to the US dollar, which maintains a fixed parity with the US dollar. The specific regulations are: (1) 1 USD banknotes with a gold content of 0.888671 grams. Other colleagues also correspond to the gold content of the country's currency. For example, the gold content of 1 pound of pounds of banknotes in 1946 is 3.58134 grams. The basis for decision. For example, the exchange rate of the British pound and the US dollar is 3.58134 / 0.888671 = 4.03, that is, 1 pound is equal to $ 4.03. (2) The fluctuation rate of the exchange rate of members of the International Monetary Fund in the foreign exchange market shall not exceed 1 % of its currency parity up and down limit. Otherwise, in order to maintain the stability of the exchange rate, other member states have the responsibility to intervene.
2. The floating exchange rate system
The floating exchange rate system refers to a exchange rate system that can freely fluctuate in the foreign exchange market according to the supply and demand relationship in the foreign exchange market. Under this exchange rate system, the fluctuation rate of the exchange rate of various countries is not limited and does not assume the obligation to maintain the floating range. The imbalance of international revenue and expenditure is self -regulated through exchange rate changes. The floating exchange rate system has a long history. In the Golden System, Britain, the United States, France, and some developing countries have implemented a floating exchange rate system. Since entering the 1970s, with the development of global inflation, the floating rate of exchange rates in various countries has become more flexible and complicated. In August 1971, the floating exchange rate system began to implement the major currency of the international currency. By March 1973, the floating exchange rate system was fully publicly implemented. The main floating methods that have existed a few days ago are: free floating methods that are free and spontaneous adjustment in accordance with the supply and demand of the foreign exchange market, the government's intervention of the foreign exchange market, and the management floating method of the European Community Regional Currency Group. There is also a separate floating method that does not take joint operations with any country.
1994 Before January 1, 1994, the RMB exchange rate was formulated, adjusted and announced by the state according to the needs of economic development. After January 1, 1994, my country implemented a new foreign exchange management system. The basic decisive factor of the RMB exchange rate was the supply and demand status of the foreign exchange market, while being managed and regulated by the central bank. But the marketization of the RMB exchange rate is not high.
sterling silver wholesale jewelry nyc The exchange rate is also known as exchange rate, foreign exchange brand price or foreign exchange market, that is, foreign exchange sale price. It is the relatively comparison price of currency between the two countries, that is, the price of the currency of the other country with the currency of one country.
The exchange rate has different formulation methods under different currency systems. Under the standard of gold, due to the different currency content of different countries, the comparison of the gold content of the two currencies (also known as the currency price) is the basis of the foreign exchange exchange rate. Under the non -cash credit currency system, the exchange rate changes are restricted by the relationship between foreign exchange supply and demand. When a certain currency supply is required, the exchange rate of this currency will rise. When a certain currency supply is too required, its exchange rate will decline.
bulk wholesale costume jewelry distributors /.GSP Everbright Bank's RMB foreign exchange brand price list, if you update every hour, if you want to use foreign currency to replace the RMB, you can see the purchase price; otherwise