If a country with a fixed exchange rate is continuously losing foreign reserves, speculators will:

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When a country with a fixed exchange rate is losing foreign reserves, it means that there is an excess demand for foreign currency. Speculators will take advantage of this situation by selling the country's currency (which is losing value) and buying foreign currency (which is gaining value). This will put further downward pressure on the country's currency and exacerbate the situation.

If a Country with a Fixed Exchange Rate Is Continuously