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Simply put, low inflation rates means higher demand in market including demand from foreign markets. This is translated in the price quoted for imported items. Thus, as import is increased so does money outflow. This means more foreign currency are needed (bought) to buy imported items and relatively the value of local currency rates will be depreciated.
What else can I help you with?
How do interest rates and inflation affect real estate in south Africa?
explain how do intrest rates and inflation affect the real estate
What will happen to the exchange rate if a country has low inflation and rapid economic growth?
Exchange rates would most likely stay the same. If inflation increase or decreases I believe that is where exchange rates will more so be affected
What are the factors that affects financial instruments?
Many factors affect the financial market, particularly the stock market. Examples include inflation and deflation, interest rates, foreign markets, and exchange rates.
What factors determine how exchange rates are based on?
Exchange rates are determined by factors such as interest rates, inflation, political stability, and economic performance of a country. Supply and demand for a currency also play a significant role in determining exchange rates.
How does inflation affect interest rates?
if an interest rate is high, it is likely that inflation is also high. Generally, one doesn't affect the other so much as measure the other.
How does exchange rates depreciation affect the south African economy?
Exchange rates depreciation affect the south African economy because it leads to changes in inflation in the country' economy .
How do interest rates and inflation affect real estate in south Africa?
explain how do intrest rates and inflation affect the real estate
What are some of the factors that affect the exchange rate in the long run?
Some factors that can affect exchange rates in the long run include interest rates, inflation rates, political stability, economic performance, and government debt. These factors can influence investor confidence, which in turn impacts the demand for a country's currency on the foreign exchange market and ultimately its exchange rate.
What will happen to the exchange rate if a country has low inflation and rapid economic growth?
Exchange rates would most likely stay the same. If inflation increase or decreases I believe that is where exchange rates will more so be affected
What are the differences in exchange rates when comparing different currencies?
Exchange rates refer to the value of one currency in relation to another. The differences in exchange rates between different currencies are influenced by factors such as economic stability, interest rates, inflation rates, and geopolitical events. These differences can impact the cost of goods and services when trading between countries and can affect international investments and tourism.
What are the factors that affects financial instruments?
Many factors affect the financial market, particularly the stock market. Examples include inflation and deflation, interest rates, foreign markets, and exchange rates.
What factors determine how exchange rates are based on?
Exchange rates are determined by factors such as interest rates, inflation, political stability, and economic performance of a country. Supply and demand for a currency also play a significant role in determining exchange rates.
What has the author Thomas O'Connell written?
Thomas O'Connell has written: 'Inflation and exchange rates' -- subject(s): Econometric models, Inflation (Finance), Wage-price policy, Foreign exchange
What has the author Marc Klau written?
Marc Klau has written: 'Exchange rate regimes and inflation and output in Sub-Saharan countries' -- subject(s): Foreign exchange administration, Foreign exchange rates, Inflation (Finance)
How does inflation affect interest rates?
if an interest rate is high, it is likely that inflation is also high. Generally, one doesn't affect the other so much as measure the other.
What has the author Jeannine N Bailliu written?
Jeannine N. Bailliu has written: 'Exchange rate pass-through and the inflation environment in industrialized countries' -- subject(s): Econometric models, Foreign exchange rates, Prices, Effect of inflation on, Inflation (Finance), Foreign exchange
What has the author Wanjoong Kim written?
Wanjoong Kim has written: 'Impacts of exchange rates on employment in three Asian countries' -- subject(s): Foreign exchange rates, Effect of inflation on, Unemployment
