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What factors affect the supply of and demand for a currency?

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Question added by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date Posted: 2016/02/12
Mahmoud Hamid
by Mahmoud Hamid , Finance Manager , Experts

Factors affect the supply of and demand for a currency include:

Interest rates where the high interest rate cause a currency appreciation.

High inflation rates cuase depreciaiton of the currency

The status of the economy 

Speculation

Government debt

A country's balance of payments

The positions of other currencies compared to the subject currency

 

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