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Demand and Supply of currency

Discussion in 'CT7' started by shdh, Jul 18, 2016.

  1. shdh

    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
     
    shdh, Jul 18, 2016
    #1
  2. Anna Walklate

    Anna Walklate ActEd Tutor Staff Member

    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, Jul 18, 2016
    #2
  3. shdh

    shdh Ton up Member

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

    Regards,
    Shyam
     
    shdh, Jul 18, 2016
    #3

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