AshikaKnowledge Contributor
Provide two examples and explain why there is a rise in demand for a foreign currency when its price decreases.
Provide two examples and explain why there is a rise in demand for a foreign currency when its price decreases.
When the price of a foreign currency decreases, imports get cheaper in price. Hence, more demand occurs for foreign exchange by the importers. Tourism is promoted abroad as it becomes cheaper. Hence, the demand for the foreign currency increases.