Open Economy
Macroeconomics
EXCHANGE RATE & BALANCE OF PAYMENT
,Exchange Rate
An exchange rate is the value of a nation’s currency when
is traded for another currency.
The relative strength or weakness of a nation’s currency h
a strong impact on its trade with other nations, on
tourism industry, and on the prices its consumers pay f
imports.
,Exchange Rate
Most exchange rates are defined as floating. Their valu
rise or fall based on supply and demand in the forei
exchange market.
Some exchange rates are pegged or fixed to the value o
specific country’s currency.
Movements in a nation’s exchange rate change the real co
of the supplies that are purchased from abroad, the cost
imports that its consumers buy, and the level of demand f
the nation’s products overseas.
, Exchange Rate
Central Bank (SBP) Market
Revaluation Appreciation
Devaluation Depreciation
Macroeconomics
EXCHANGE RATE & BALANCE OF PAYMENT
,Exchange Rate
An exchange rate is the value of a nation’s currency when
is traded for another currency.
The relative strength or weakness of a nation’s currency h
a strong impact on its trade with other nations, on
tourism industry, and on the prices its consumers pay f
imports.
,Exchange Rate
Most exchange rates are defined as floating. Their valu
rise or fall based on supply and demand in the forei
exchange market.
Some exchange rates are pegged or fixed to the value o
specific country’s currency.
Movements in a nation’s exchange rate change the real co
of the supplies that are purchased from abroad, the cost
imports that its consumers buy, and the level of demand f
the nation’s products overseas.
, Exchange Rate
Central Bank (SBP) Market
Revaluation Appreciation
Devaluation Depreciation
