Exchange Rate of Currency Effects Directly of Imports and Exports on the Country: Experts

Iraqi Dinar 123 News:– It is considered that the economic performance of any country reflect positive or negative impact on the value of its local currency. There are a number of major factors involved in the fluctuation of the currency value such as interest rate because higher interest value rate attract a considerable amount of investors to bring their investment in the country. Some other factors participate in balancing the trade volume in the country with increasing demand for the specific commodity would boost the demand of its local currency. The political factor is also one of the most important elements involved in the fluctuation of inflation rate that affect on the purchasing power for services and goods, and it directly relates to the value of currency.

It is important that management of price exchange rate and currency market management are perfect mechanisms adopted by the economic policies of the country. One of the famous economists, Ahmed Abrihi Ali said that local currency exchange rate affect directly on exports and imports of any country. It can also decrease or increase the import prices in order to support international effectiveness or decrease its amount. He further added that there is more pressure on China to revalue its currency to increase imports and exports because increasing the currency value of China would decrease its exports in all over the world. So, Chinese economy is perfect example to control the pressure and Chinese economy is considered the 2nd largest powerful economy in the world.

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