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How might a rise in local currency affect a country's interest rates?
Wiki User
∙ 13y ago
It may also encourage a decrease in the interest rates in the country if the central bank of that country wants to maintain the currency exchange rate and a decrease in the interest rate would spur local investment.
Wiki User
∙ 13y ago
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What are the effect of dollarization in developing country?
since dollarization replaces country's currency, it will lead to depreciation of local currency. Investors wont find it worth investing in a country with falling local currency as it will fetch them no good return. Also, it will affect our export. Import would be expensive.
How does exchange rate changes affect imports and exports?
If you are exporting and your local currency becomes strong then your products become more expensive for your buyers. If you are importing and your local currency becomes weak then the products you are importing become more expensive.
Why some currencies are worth more than others?
it depends on many factors such as interest rate,economy health and foreign trade. if your interest rate is high, investers are more willing to buy your currency as it will have high return for them. if your inflation is low, you are going to have more investors thus more demand for your local currency. the value of your currency will go up if you have foreign trade(exports) by wich foreign currencies enter your country resulting in demand and uppreciating local currency.
How do exchange rate affect businesses?
The local economy will be higher raising on inflation and the value of currency of the price will be in intrest rate as decreasing.
What is dollarization?
To abandon the local currency, and use a more stable foreign currency..ex U.S., Euro..etc
What are the effect of dollarization in developing country?
since dollarization replaces country's currency, it will lead to depreciation of local currency. Investors wont find it worth investing in a country with falling local currency as it will fetch them no good return. Also, it will affect our export. Import would be expensive.
How does exchange rate changes affect imports and exports?
If you are exporting and your local currency becomes strong then your products become more expensive for your buyers. If you are importing and your local currency becomes weak then the products you are importing become more expensive.
Why some currencies are worth more than others?
it depends on many factors such as interest rate,economy health and foreign trade. if your interest rate is high, investers are more willing to buy your currency as it will have high return for them. if your inflation is low, you are going to have more investors thus more demand for your local currency. the value of your currency will go up if you have foreign trade(exports) by wich foreign currencies enter your country resulting in demand and uppreciating local currency.
How do exchange rate affect businesses?
The local economy will be higher raising on inflation and the value of currency of the price will be in intrest rate as decreasing.
How do you change foreign currency to local currency?
BIU
Where the yen currency is used?
The yen is the local currency of Japan.
What is the interest rate and monthly payment amounts?
The interest rate is the annual charge levied on you loan. If you borrowed 100 units of local currency and the interest rate was 10% then you would have to pay 10 units of local currency each year while you owed the 100. The monthly payment amount is the amount you pay back each month to pay back the money you have borrowed. Thus if you borrowed 100 at 10% interest and were to pay this back over a year your month payment amount would be (100+10)/12 = 9.166666666666667 a month for a year.
What actors and actresses appeared in Local Currency - 2011?
The cast of Local Currency - 2011 includes: Mark Elwood as himself
What are 5 non income factors influencing consumption and savings?
interest rates value of equity markets commodity prices employment rate exchange value of local currency
What is a local Currency?
i dont now
What is the local currency in Japan?
Yen
Where is the yen a local currency?
Japan
