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Explain four reasons why residents of any country demand foreign currency in the foreign exchange market

Explain four reasons why residents of any country demand foreign currency in the foreign exchange market

Answers


Zainabu

i. To purchase foreign made goods and services to be paid for in foreign currency.

ii. To purchase securities or bonds denominated in foreign currency.

iii. To invest directly in foreign countries either by buying shares in foreign companies or by building production facilities in foreign countries.

iv. To speculate in the foreign exchange market for purposes of making a profit.



Zainabdawa answered the question on August 1, 2018 at 08:38

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