Explain why there is an increase in demand for Foreign Currency when its price falls.
Explain why there is an increase in demand for Foreign Currency when its price falls.
4 views
1 Answers
There is an inverse relationship between of foreign currency and its demand. Suppose foreign exchange rate falls, it means that imports have become cheaper because people now have to pay less for imports. As a result, demand for imports will rise. This leads to increase in demand for foreign exchange.
4 views
Answered