Slow economic growth and continued unemployment problems are common reasons for central banks to hold currency values down.

Question

Quizplus · Accepted Answer

When the economy is experiencing slow growth and high unemployment rates, central banks may attempt to stimulate the economy by keeping interest rates low and/or increasing the money supply. This can lead to a decrease in the value of their currency, as investors may be more hesitant to hold onto assets denominated in that currency.

Slow Economic Growth and Continued Unemployment Problems Are Common Reasons