Answer to Question #228874 in Finance for Musenga sichona

Question

Factors which contributes to Currency appreciation

Answer 1

Solution:

Factors which contributes to Currency appreciation are as follows:

1. Inflation. Inflation is the relative purchasing power of a currency compared to other currencies.
2. Interest Rates.
3. Public Debt.
4. Political Stability.
5. Economic Health.
6. Balance of Trade.
7. Current Account Deficit.
8. Confidence/ Speculation.
9. Government Intervention