Editing Exchange rate (section)

==Factors affecting the change of exchange rate==
#[[Balance of payments]]: When a country has a large international balance of payments deficit or trade deficit, it means that its foreign exchange earnings are less than foreign exchange expenditures and its demand for foreign exchange exceeds its supply, so its foreign exchange rate rises, and its currency depreciates.
#Interest rate level: Interest rates are the cost and profit of borrowing capital. When a country raises its interest rate or its domestic interest rate is higher than the foreign interest rate, it will cause capital inflow, thereby increasing the demand for domestic currency, allowing the currency to appreciate and the foreign exchange depreciate.
#Inflation factor: The inflation rate of a country rises, the purchasing power of money declines, the paper currency depreciates internally, and then the foreign currency appreciates. If both countries have inflation, the currencies of countries with high inflation will depreciate against those with low inflation. The latter is a relative revaluation of the former.
#Fiscal and monetary policy: Although the influence of [[monetary policy]] on the exchange rate changes of a country's government is indirect, it is also very important. In general, the huge fiscal revenue and expenditure deficit caused by expansionary fiscal and monetary policies and inflation will devalue the domestic currency. The tightening fiscal and monetary policies will reduce fiscal expenditures, stabilize the currency, and increase the value of the domestic currency. 
#Speculation: If speculators expect a certain currency to appreciate, they will buy a large amount of that currency, which will cause the exchange rate of that currency to rise. Conversely, if speculators expect a certain currency to depreciate, they will sell off a large amount of the currency causing the exchange rate to fall. Speculation is an important factor in the short-term fluctuations in the exchange rate of the foreign exchange market.
#Government market intervention: When exchange rate fluctuations in the foreign exchange market adversely affect a country's economy, trade, or the government needs to achieve certain policy goals through exchange rate adjustments, monetary authorities can participate in currency trading, buying or selling local or foreign currencies in large quantities in the market. The foreign exchange supply and demand has caused the exchange rate to change.
#Economic strength of a country: In general, high economic growth rates are not conducive to the local currency's performance in the foreign exchange market in the short term, but in the long run, they strongly support the strong momentum of the local currency.

===Emerging markets===
Research on [[target zones]] has mainly concentrated on the benefit of stability of exchange rates for industrial countries, but some studies have argued that volatile bilateral exchange rates between industrial countries are in part responsible for financial crisis in emerging markets. According to this view the ability of emerging market economies to compete is weakened because many of the currencies are tied to the US dollar in various fashions either implicitly or explicitly, so fluctuations such as the appreciation of the US dollar to the yen or deutsche Mark have contributed to destabilizing shocks. Most of these countries are net debtors whose debt is denominated in one of the [[G3 currencies]].<ref>{{cite book |title=Preventing Currency Crises in Emerging Markets |url=https://books.google.com/books?id=3-Q7YUOi72gC&pg=PA133 |access-date=7 September 2019|isbn = 9780226185057|last1 = Edwards|first1 = Sebastian|last2 = Frankel|first2 = Jeffrey A.|date = 2009-02-15| publisher=University of Chicago Press }}</ref>

In September 2019 Argentina restricted the ability to buy US dollars. [[Mauricio Macri]] in 2015 campaigned on a promise to lift restrictions put in place by the left-wing government including the [[capital controls]] which have been used in Argentina to manage economic instability. When inflation rose above 20 percent transactions denominated in dollars became commonplace as Argentines moved away from using the peso. In 2011 the government of [[Cristina Fernández de Kirchner]] restricted the purchase of dollars leading to a rise in black market dollar purchases. The controls were rolled back after Macri took office and Argentina issued dollar denominated [[Bond (finance)|bonds]], but when various factors led to a loss in the value of the peso relative to the dollar leading to the restoration of capital controls to prevent additional [[Currency appreciation and depreciation|depreciation]] amidst peso selloffs.<ref>{{cite news |title=Argentina just reinstated foreign currency restrictions. Here's what you need to know. |url=https://beta.washingtonpost.com/politics/2019/09/06/argentina-just-reinstated-foreign-currency-restrictions-heres-what-you-need-know/?noredirect=on |access-date=8 September 2019 |newspaper=The Washington Post}}</ref>