Economy, asked by arnab8865, 1 year ago

Discuss the impact of balance of payment and inflation on exchange rate

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Answered by rslekshmi08

1

change in a country's balance of payments can cause fluctuations in the exchange rate between its currency and foreign currencies. ... The balance of payments does not impact the exchange rate in a fixed-rate system because central banks adjust currency flows to offset the international exchange of funds.

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