Foreign Exchange Flashcards
Supply of dollars ⬆️
Gold price increases or US firms buy more SA minerals
Supply curve shifts ➡️
Rand ⬆️ & dollar ⬇️
Supply of dollars ⬇️
Gold price falls or US citizens stop investing in SA
Supply curve shifts ⬅️
Rand ⬇️ & dollar ⬆️
Demand for dollars ⬇️
Recession in SA causes slump in demand for dollars
Demand curve shifts ⬅️
Rand ⬆️ & dollar ⬇️
If the rand ⬇️ against the dollar
What are the knock on effects
Export prices (in dollars) ⬇️
Import prices (in rand) ⬆️
Current account ⬆️
Domestic prices ⬆️
If the rand ⬆️ against the dollar
What are the knock on effects
Export prices (in dollars) ⬆️
Import prices (in rand) ⬇️
Current account ⬇️
Domestic prices ⬇️
Demand for dollars ⬆️
S.A firms purchase more US capital goods or bec tourists visit the US
Demand will shift ➡️
Rand ⬇️ & dollar ⬆️
