The demand for a foreign currency is based on how many buyers are in the market. Generally speaking, when a corporation seeks to buy products from another company in a foreign country, that corporation will need to make the purchase in the currency of the aforementioned company. Usually their bank will enter the foreign exchange market on behalf of their client and buy the currency required. The greater the demand for that currency, the higher its price.
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.
Demand and supply of domestic currencies with respect to other foreign currency causes currency rates to change.
Determinants of demand include factors that determine the amount that will be purchased at each price
Foreign exchange rate determine with various factors like 1.GDP- Gross Domestic Product 2.Policy of the country like Monetary & fiscal policy 3.Per capita income 4.IIP- index of industrial Production 5. Infrastructure 6.PEST issues 7. Currency exchange laws of the particular country. 8.Demand flow 9.FDI- foreign direct investment
Factors include: * Monetary policies of the federal reserve or central bank. * Health of an economy. * Trade policies. * Currency inflation and deflation. FACTORS CAN BE CATEGORISED INTO 3: 1 Economic factors 2 Political factors 3 Market psychology
Foreign investment can have both positive and negative impacts on a country's currency. If there is a significant inflow of foreign investment, it can increase the demand for the country's currency, leading to an appreciation in its value. On the other hand, if foreign investors withdraw their investments, it can decrease the demand for the currency and lead to its depreciation. The impact ultimately depends on various factors such as the size of investment, overall economic conditions, and market sentiment.
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.
Demand and supply of domestic currencies with respect to other foreign currency causes currency rates to change.
Determinants of demand include factors that determine the amount that will be purchased at each price
One popular site for foreign currency trading is Forex On Demand, which not only is a platform for foreign currency trading but also offers informational articles about foreign currency trades. Another popular site for foreign currency trading is the XE website, which includes a help section as well as a forum to learn more about it.
Foreign Currency rates fluctuate based on the market forces of demand and supply. This means the rates can change at any given moment. We need a foreign exchange market to determine a value for each foreign currency and this would make it easier to exchange different currencies for one another.
Foreign exchange rate determine with various factors like 1.GDP- Gross Domestic Product 2.Policy of the country like Monetary & fiscal policy 3.Per capita income 4.IIP- index of industrial Production 5. Infrastructure 6.PEST issues 7. Currency exchange laws of the particular country. 8.Demand flow 9.FDI- foreign direct investment
Factors include: * Monetary policies of the federal reserve or central bank. * Health of an economy. * Trade policies. * Currency inflation and deflation. FACTORS CAN BE CATEGORISED INTO 3: 1 Economic factors 2 Political factors 3 Market psychology
demand and supply
Factors that also determine the quantity demanded.QdxPxPyITN
the foreign exchange rate is determined by the supply and demand of the market. If the demand of a certain currency pair is greater than the supply the price will rise and vice versa.
hwo to damand the cause of good sold.....how to determine the demand of production