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Exchange rates affect the economy by changing the price of exchanging or investing in other countries. For example, when the exchange rate of one country rises relative to another, they are now able to buy more goods from the foreign country but their exports also cost more to foreigners. Therefore, this increases imports, decreases exports by artifically altering the price of exporting and importing. Exchange rates, being related to interest rates, also affect investment and saving between different countries.
Wiki User
∙ 13y ago
Wiki User
∙ 11y agodependent on which way it goes it can make it more cheap/expencive for Another Country to buy a countries products.
if its more expensive then the countries trade goes down , the opposite happens if its more cheap.
Wiki User
∙ 13y agoIf there is high demand and low product it will become more expensive where if there is low demand and high ammounts of product the price will go down.
Wiki User
∙ 9y agoThe exchange rate (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specifies how much one currency is worth in terms of the other.
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What are the functions of foreign exchange rates?
We have these rates mainly to make equivalent exchange between countries' currency. They also serve to allow consumers to see how a country's economy is doing.
How does the exchange rate affect Britain?
Exchange rate is depends on the rate of that country currency rates and gold!
Foreign exchange rates refer to the?
A straight answer for your question is the economy of the currency based on present, past and future perspective.
What is the money rate?
There is no single "money rate". There are rates of exchange between the currencies of most countries. These are dynamic rates and change continuously. You can find reasonably up-to-date rates from various currency exchange rate websites.Then there are interest rates for borrowing and lending. Interest rates for borrowing will depend on what you are borrowing for, how long you are borrowing for and your credit-worthiness. The rate of interest that you might get for saving depends on the amount and the period.All these rates depend on the state of the economy and the expected development in the economy over the period in question.
What are foreign exchange rates?
Foreign exchange rates are currency exchange value of other countries.
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 interest rate affect the sa economy?
how interest rates affect the sa economy
What are the functions of foreign exchange rates?
We have these rates mainly to make equivalent exchange between countries' currency. They also serve to allow consumers to see how a country's economy is doing.
How does the exchange rate affect Britain?
Exchange rate is depends on the rate of that country currency rates and gold!
Who is the project stakeholders?
how fluctuating currency exchange rates can affect an international construction project
Who controls commerical loan rates?
There are multiple factors that affect commercial loan rates. Loan rates are controlled by predesignated amounts and changes in the economy.
What factors affect the oprerations of the stock exchange apart from real interst rates?
There are unlimited number of factors that can affect the operations of stock exchanges apart from the real interest rates. A few are:- Macro and micro economic indicators of economy Currency fluctuations Corporate Earnings Inflation rate A number of factors can affect the operations of stock exchanges at any given time.
Foreign exchange rates refer to the?
A straight answer for your question is the economy of the currency based on present, past and future perspective.
How can positively and negatively exchange rates can affect a firms global sales?
A change in exchange rates might affect a business in the following ways: -Exchange rates changes can increase or lower the price of a product sold abroad -The price of imported raw materials may change -The price of competitors' products may change in the home market For more info go to http://capguns.org
What is the money rate?
There is no single "money rate". There are rates of exchange between the currencies of most countries. These are dynamic rates and change continuously. You can find reasonably up-to-date rates from various currency exchange rate websites.Then there are interest rates for borrowing and lending. Interest rates for borrowing will depend on what you are borrowing for, how long you are borrowing for and your credit-worthiness. The rate of interest that you might get for saving depends on the amount and the period.All these rates depend on the state of the economy and the expected development in the economy over the period in question.
What are foreign exchange rates?
Foreign exchange rates are currency exchange value of other countries.
You are going to Heidleberg Germany will you get the best exchange rate the military base?
Doubt it. Use your credit card that is tied into the current bank rates. The rates at the airports are usually right in line with the economy, unless you have a local merchant that is willing to exchange your money.
