One of the most influential factors of the stability of country’s currency is the inflation rate. It shows the actual value of the money within the country, indicating the number of goods which can be bought on the same amount of money. Another factor is the interest rate which is related to the annual percentage rate (APR). This factor has a serious impact on both inflation and exchange rate. One more crucial aspect which affects the country’s currency is the public debts. Large debts not only lead to inflation but undermine the country’s authority on the international level. Foreign investors won’t be interested in helping the local businessmen. Among other influential factors, we can mention political stability, economic growth, the prevalence of public or private sector, and the black market
What are the factors that affect a country’s currency?
August 22, 2018 \ Business Papers \ 0 Comments