An increase in the supply of a currency on the foreign exchange market will lead to its depreciation, which will make its exports relatively affordable in other countries.

Question

Quizplus · Accepted Answer

An increase in the supply of a currency typically leads to its depreciation because more of the currency is available, reducing its value. This makes goods priced in that currency cheaper for foreign buyers, potentially boosting exports.

An Increase in the Supply of a Currency on the Foreign