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foreign exchange - Coggle Diagram
foreign exchange
1$= 80
price increase but value decrease
$ appreciate rupees depreciate
less purchasing power
exports more because for US will have more amount of rupees
BOP surplus Export > imports
TO REACH TO IDEAL SITUATION
supply more
$ sell and rupees buy
1 more item...
1$=60
prices decrease and value increase
$ depreciate and rupees appreciate
purchasing power more
imports increase because at cheap rate goods are available
BOP deficit as imports > exports
TO REACH TO IDEAL SITUATION
demand more
$ buy rupee sell
1 more item...
1$= 70 ideal situation