How to read foreign currency English?

English: foreign currency.

Explanation:

Foreign currency refers to the currency other than "bookkeeping base currency", which is the bookkeeping base currency relative to the domestic currency, and is specifically manifested as the currency other than "bookkeeping base currency" in accounting.

If the official currency of a region is considered unstable or unreliable in the near future (such as high inflation or political instability), many people will try to use foreign currency as a means of value storage. Large and important economic units (such as foreign trade banks, central banks or governments) also store foreign currency. These foreign currencies can be used to reduce the value impact of currency depreciation, or to promote or simplify international trade, and so on. The government also regards foreign exchange as a means of its economic policy. Some people also use foreign currency to take speculative risks in order to gain profits from exchange rate fluctuations.

There are certain risks in storing foreign currency. If a currency circulates abroad, its circulation rate will decrease, and its number in the official circulation area will also decrease. In this case, its official central bank will be forced to increase its number, which will lead to the devaluation of the currency under certain conditions. For example, in 2002, the dollar depreciated by 65,438+05% against the euro in a short time, which led to the depreciation of the euro zone's dollar foreign exchange reserves.