Introduction to Exchange Rates and Forex Markets

Different countries have different currencies, and understanding how their values are determined is fundamental to understanding how trade between nations takes place.

[adarsh]

Say there is a current account surplus, so a financial account deficit. So domestic agents are investing in foreign assets, including FDI. This means the demand for foreign currency increases and the supply of the domestic currency decreases because of demand for FDI, meaning the domestic currency depreciates, and the current account surplus grows. So does a current account surplus grow without any exogenous changes (as long as FDI occurs)?

[katherinevon]

Thanks. It is ur videos that helps to get 7s in my econ quizes x) Still waiting for the Section4: development. xP

[haroldlong]

Extremely importand information for every trader Thank you for the videos

[mrsnoma]

Thank you…. Sometimes these textbook confuse 🤞🏾

[edwinchan]

talks too fast for a guy trying to study for finals at 4:23am

[peddapullaphanindragoud]

Thank you jason, good explanation with graphs and examples

[yashigupta]

Will the simultaneously increase in Demand and supply of foreign currency in both the country is by the same amount?
I think As there is difference in exchange rate so if there is rise in the demand for foreign currency, the supply of domestic currency is not equal to demand for supply for foreign currency

[jessalele]

Thank you, it’s detailed & easy to understand.

[genc]

does money supply in the country affect exchange rates?

[btol]

Hi Jason, what happens to the graph when there are hidden costs, i.e resort fees or transaction charges. So for example if EU want to purchase or import US goods, would it shift the demand curve or just change its position (the dot) on the current curve? Thanks again!

[NerdyMaher]

thank you Does your channel cover all IB economics courses?

[rorysweg]

what level of economics is this? university or a-level standard?

[jiressmbaya]

We don't use supply and demand in forex market. 🤦‍♂️🤦‍♂️🤦‍♂️