- Messages
- 62
- Reaction score
- 74
- Points
- 28
Can u give any reason as to why real exchange rate appreciated....
I agree that exchange rate improved by 10% and that domestic prices fall by 10%.... but brother study the effect of fall in prices on E.R. When prices fall, we are able to export more goods and services.... so the demand of our currency will shift outwards making it strong and causing it to appreciate