In the contemporary world economy, any country needs to conduct international economic and trade exchanges.
Foreign exchange is used in the following three ways: 1. As a means of payment.
As a means of payment for international settlement, foreign exchange is one of the indispensable tools for international economic exchanges, which can promote international economic and trade development and political and cultural exchanges.
2. Promote the development of international trade and capital flows.
Foreign exchange is the product of international economic exchanges. Without foreign exchange, the international turnover and application of capital cannot be accelerated, and international economic, trade and financial exchanges will be hindered.
3. Facilitate the adjustment of international capital supply and demand.
For example, in order to accelerate the pace of construction, developing countries need to make selective use of long-term and short-term credit funds in the international financial market, while developed countries also need to find a way out of the remaining funds.
