Abstract
Exchange rates are determined by demand and supply of currencies in the foreign exchange market. World‐wide arbitrage operations ensure that world exchange rates prevail. Demand and supply of foreign currencies depend on: Visible trade balance. Invisible trade balance. Movements of capital: long‐term, short‐term and speculative.
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© 1994 Jack Harvey
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Harvey, J. (1994). Foreign Exchange Rates. In: Economics Revision Guide. Palgrave, London. https://doi.org/10.1007/978-1-349-13313-0_39
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DOI: https://doi.org/10.1007/978-1-349-13313-0_39
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-60195-2
Online ISBN: 978-1-349-13313-0
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