What Is Foreign Exchange Dumping?

Foreign exchange dumping: the use of the opportunity to depreciate foreign currencies, dumping goods and fighting for the market 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 needs certain conditions, mainly because domestic currency devaluation is faster than internal depreciation and no retaliation.