Answer to Question #320550 in Macroeconomics for Dripper

Question

What type of event must happen for the exchange rate to change from R8:$1 to R9:$1 and the amount of USD traded daily to increase, as illustrated.

Answer 1

If the exchange rate from R8:$1 becomes R9:1$ that means that the R currency devaluated, and as we've been told that the amount of USD traded daily increased, that leads to logical answer - the central bank of a country had been buying the currency(USD).