I develop a framework that connects exchange rates to monetary and fiscal policies. In my framework, government is like a company. On the one hand, each government has liabilities, which are mostly debt denominated in local currency. On the other hand, each government also has earnings, which are tax revenues net of government spendings. The government's liabilities are affected by its monetary policy, while its earnings are affected by its fiscal policy. Because the government uses its earnings to pay back its local currency debt, the value of the local currency reflects the present value of government surpluses per unit of government debt. This relationship predicts that exchange rates comove with fiscal conditions, and that currency risk premia are determined by the cyclicalities of government earnings, both of which are validated in the data.