The value of currency is determined through the laws of supply and demand. What I don’t understand is why can’t a country with high imports rate preserve the value of its currency if it also has a high export rate and there’s a lot of demand on its currency as well?
In: Economics
A country can’t control its export rate. That depends on who wants to buy the stuff they sell. They can tamper with the market, by lowering prices for example, but that’s pretty easily detected and leads to trade sanctions.
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