Question

explain the relationship between foreign currency and domestic currenc?​

Answer 1

✰ explain the relationship between foreign currency and domestic currenc?

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★ The Currency appreciation is an increase in the value of one currency in relation to another currency. Currencies appreciate against each other for a variety of reasons, including government policy, interest rates, trade balances, and business cycles.

✰ADDITIONAL INFORMATION✔

★ When the domestic currency appreciates, demand for imports by the native residents also increases. This is because appreciation of domestic currency implies depreciation of foreign currency. When domestic currency appreciates, imports become cheaper and there by the demand for import increases.

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