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Demand and Supply of currency

S

shdh

Ton up Member
Hi,

I need some help in understanding that when is the currency in demand and when is it in supply? Which situations are representing demand of a country's currency and which are representing the supply of it's currency?

Is there a way to knowing as to when it is demand and when it is supply?

Thanks & Regards,
Shyam
 
Demand for a currency comes from the positive items in a country's balance of payment accounts.

Supply of a currency comes from the negative items in a country's balance of payment accounts.

So you can go back to the balance of payments account and identify how the item will appear there. This will then tell you the effect on supply and/or demand.
 
Anna Walklate said:
Demand for a currency comes from the positive items in a country's balance of payment accounts.

Supply of a currency comes from the negative items in a country's balance of payment accounts.

So you can go back to the balance of payments account and identify how the item will appear there. This will then tell you the effect on supply and/or demand.
Click to expand...

Thank you professor. It's a very clear insight into the query.

Regards,
Shyam
 
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