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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

A rise in the exchange rate of a foreign currency in terms of home currencyleadsto depreciation of home currency

The flight of capitalcausesdepreciation of home currency

The excess demand for foreign currencycan causedepreciation of home currency

an increase in money supplyleadsto depreciation of home currency

a central bank can doto causea home currency depreciation

with which to pay for those goodscausinga depreciation of the home currency

In the current environmentwould resultfrom rapid depreciation of the domestic currency

For example , a surge in purchases of foreign goods by home country residents will cause a surge in demand for foreign currency with which to pay for those goodscausinga depreciation of the home currency

monetary easing by lowering the interest ratewill causedepreciation of the currency of the country

A fall in demand for domestic productscausesa depreciation / devaluation of the domestic currency

It will sell domestic currency for foreign currenciesto causedepreciation of the domestic money

by external shocks(passive) is caused bydepreciation of national currency

Increased demand for bondsleadsto a depreciation of the national currency

export - friendly monetary policieshave ledto the sharp depreciation of the domestic currency

is associated with a rise in domestic pricescausinga proportional depreciation of the domestic currency

the data release ... likelyto causedepreciation of the related currency

factorscould causedepreciation of a nations currency

likelyto causedepreciation of the related currency

domestic currency appreciation and large outflowcausedomestic currency depreciation

The outflowshad already causeddepreciation of local currencies

stimulus measuresleadsto the depreciation of national currencies

the value of domestic deposits ... foreign depositsleadsto a depreciation of the domestic currency

a quick response by participants in the foreign - exchange market through selling the domestic currency in favor of other currenciesthereby leadingto domestic currency depreciation

a quick response by the participants in the foreign exchange market through selling the domestic currency in favor of other currenciesthereby leadingto domestic currency depreciation

Individuals would shift from domestic bonds to foreign bondsleadingto an depreciation of the domestic currency

Unanticipated rise in domestic monetary growthwill leadto depreciation of the domestic currency

capital outflows ... in turnleadsto the depreciation of the domestic currency

this leads to a quick response by participants in the foreign exchange market through selling the domestic currency in favour of other currenciesthereby leadingto domestic currency depreciation

this leads to a quick response by participants in the foreign exchange market through selling the domestic currency in favor of other currenciesthereby leadingto domestic currency depreciation

international investors shift funds abroadleadingto a depreciation of domestic currency

The capital outflow ... flowsleadto depreciation in the domestic currency

a fall in interest ratesto leadto a depreciation of the domestic currency

Inflationleadsto domestic currency depreciation

the exchange rateleadingto the depreciation of the domestic currency

Predictions Unanticipated rise in domestic monetary growthwill leadto depreciation of the domestic currency

An increase in the money supplycausesa depreciation of the domestic currency

A current account deficit tendsto leadto a depreciation of the domestic currency

This inflation tendsto causedepreciation of the domestic currency

A monetary expansionleadsto depreciation of the domestic currency

the foreign exchangeleadingto depreciation of the domestic currency

inflation rate to rise in the futuremay causeinflation rate to rise in the future

an increase in the competitiveness of domestic industrywill causean increase in the competitiveness of domestic industry

to speculation of future appreciationwould leadto speculation of future appreciation

to loan lossesledto loan losses

instability in the balance of paymentscausinginstability in the balance of payments

More informationis causedMore information

More information 5is causedMore information 5

a large drop in revenues in dollar terms for the banks ' clientswould causea large drop in revenues in dollar terms for the banks ' clients

to an improvement in trade flows of a country and vice versawill leadto an improvement in trade flows of a country and vice versa

to growing exportsleadingto growing exports

initiallycausesinitially

in a rise in their stock returnsresultsin a rise in their stock returns

significant adverse effects on domestic agents ' wealth and welfaremay causesignificant adverse effects on domestic agents ' wealth and welfare

prices to soarcausedprices to soar

to lower imports and ( sometimes ) an increase in exports , which leads to a current account surplus that balances the capital outflowleadsto lower imports and ( sometimes ) an increase in exports , which leads to a current account surplus that balances the capital outflow

an increase in the price of import itemsinfluencedan increase in the price of import items

to high inflationhaving ledto high inflation

to an increase in the foreign debt / GDP ratioleadsto an increase in the foreign debt / GDP ratio

to an increase in prices of foreign raw materialsledto an increase in prices of foreign raw materials

to a massive interest in cryptocurrencies from residentshas ledto a massive interest in cryptocurrencies from residents

an increase in its competitiveness and make selling goods abroad cheaperwould causean increase in its competitiveness and make selling goods abroad cheaper

in fewer Western - built aircraft being delivered to Russiahas also resultedin fewer Western - built aircraft being delivered to Russia

to a larger pressure of dollar - denominated foreign debt and inflationary pressure from the imported goodsleadsto a larger pressure of dollar - denominated foreign debt and inflationary pressure from the imported goods

to a drop in GDP as import costs riseleadsto a drop in GDP as import costs rise

a shift in demand from foreign goods towards domestic goodscausesa shift in demand from foreign goods towards domestic goods

alsoresultsalso

the rise in import prices(passive) caused bythe rise in import prices

to higher exportsleadsto higher exports

in increases in the firm s indebtedness in domestic currency termsresultsin increases in the firm s indebtedness in domestic currency terms

to an increase in the current accountleadsto an increase in the current account

greater competitiveness for local firms , which in turn results in exports being cheaper on the international market and this leads to an increase in foreign salescausesgreater competitiveness for local firms , which in turn results in exports being cheaper on the international market and this leads to an increase in foreign sales

to higher import costs and higher domestic inflation that erode real wages and household consumptionleadsto higher import costs and higher domestic inflation that erode real wages and household consumption

to increase in U.S. dollar returnsleadsto increase in U.S. dollar returns

to a drop in GDPleadsto a drop in GDP

a disproportionate decline in the country 's importswill causea disproportionate decline in the country 's imports

to an increase in the current account and aggregate demandleadsto an increase in the current account and aggregate demand

to an initial rise in the trade balancecan leadto an initial rise in the trade balance

the increase in the SIDwould causethe increase in the SID

to an increase in the price of imported goods and services ( in sterling terms ... as the purchasing power of sterling fallsshould leadto an increase in the price of imported goods and services ( in sterling terms ... as the purchasing power of sterling falls

in either foreign currency gains or lossescan resultin either foreign currency gains or losses

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Smart Reasoning:

C&E

See more*