Exchange rate of led landscape lighting fixtures

Exchange rate, also known as the Foreign Exchange market price or exchange rate “, a country’s currency exchange ratio of another country’s currency is a currency that the price of another currency. The name of the currency of the world, different currency, the currency of one country to other country’s currency should be provided that an exchange rate, that is, the exchange rate. In the short term, a country’s exchange rate is determined by the country’s currency exchange foreign currency demand and supply. Foreigners to buy domestic goods in domestic investment and the use of the national currency, the demand for investment and opportunity to influence the national currency. Domestic residents to buy foreign products, foreign investment and foreign exchange speculation affect the domestic money supply. In the long term, the main factors affecting the exchange rate: the relative price level of tariffs and quotas, preferences and productivity of domestic goods relative to foreign goods.

As we all know, led landscape lighting fixtures are one of LED Lighting Products. led landscape lighting fixtures and Eneltec led streetlight become  more and more popular, the exchange rate could be changed because led landscape lighting fixtures.

The reason why the national currencies can be compared, formed between parity, because they all represent a certain magnitude of value, which is the decision basis of the exchange rate. Under the gold standard, gold-based currency. Both the implementation of the gold standard of the country’s currency unit can be determined in accordance with their respective gold content the number of parity between them, namely the exchange rate. Such as a gold standard system, the United Kingdom the provisions of the weight of one pound of 123.27447 grains, purity of 22 karat gold to make gold, a gold 113.0016; the provisions of the United States $ 1 weighs 25.8 grains, fineness nine thousandths hundred, that the gold content of 23.22 grains of pure gold. According to the comparison of the two currencies of gold ￡ 1 = $ 4.8665, the exchange rate fluctuations up and down as the basis. The paper money system, the issue of paper money as a representative of the metallic currency, and with reference to the past practice of law exchange rate so that the provisions of the gold content of the paper money, known as the gold parity, the contrast of the gold parity is the decision of the bilateral exchange rate basis. However bank notes can not be converted into gold, therefore, the statutory gold content of the paper money is often ineffective. Countries in the implementation of the official exchange rate by the national monetary authorities (Ministry of Finance, central banks or foreign exchange control authorities) provides for the exchange rate, all foreign exchange transactions must be in accordance with this rate. Countries in the implementation of market exchange rates, exchange rates change with the change of the currency supply and demand in the foreign exchange market. The exchange rate has an impact on the balance of payments, national income.

Short-term capital flows are often subject to greater impact of the exchange rate. When the existence of the external depreciation of the currency trends, domestic and foreign investors reluctant to hold local currency-denominated financial assets, and will turn against as foreign exchange, capital outflow occurs. At the same time, have to turn against the foreign exchange, increased foreign exchange demand, will lead to the currency exchange rate fell further. Conversely, when the existence of the external appreciation of the currency trends, domestic and foreign investors seek to held a variety of local currency denominated financial assets, and lead to capital inflows. Also, because the foreign exchange have to turn against the local currency, foreign exchange oversupply will lead to the currency exchange rate to rise further.