What Is Foreign Exchange Dumping?
foreign exchange
Dumping:
The act of dumping goods and competing for market by using the opportunity of foreign currency depreciation is called foreign exchange.
dumping
。
This is because, after the depreciation of the domestic currency, the export commodity indicates that the price is reduced in foreign currencies, which enhances the competitiveness of the goods in the international market and is conducive to the expansion of exports. Because of the depreciation of the domestic currency, the price of imported goods increases, which weakens the competitiveness of imported goods and restricts imports.
Foreign exchange dumping
Certain conditions are needed, mainly because the rate of devaluation of domestic currencies is faster than that of internal depreciation, and the other party does not retaliate.
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