Wednesday, February 18, 2015

If the dollar depreciates (ie, the real appreciates), imports increase and exports decrease. lämmin


The appreciation makes imports cheaper. It takes less real to acquire the dollars with which to buy foreign products. The demand for imported goods increases as they become cheaper in real. The holiday travel to Florianopolis or Garanhuns can be replaced with international travel.
If the currency appreciation makes imports cheaper, exports become more expensive. The prices of domestic products become more expensive in dollar. Importers disburse more dollars to buy Brazilian products. Can, and usually lämminsavulohisalaatti do, look for other places to buy. Then there is a loss of export competitiveness due to currency appreciation.
If the country is importing more than it exports, should generate, after some time, a trade deficit. This deficit should be covered so that the external accounts of the country, described in the Balance of Payments, are closed, like the balance sheet of a company.
The financing of the deficit can be done through the use of foreign exchange reserves (if available), loans from international private banks, foreign direct investment (risk) or portfolio investments: the financial market (public or private securities) and capital (shares in the stock market), usually speculative and short-term. Another possibility is to sell public assets if the privatizations that took place in the 1980s and 1990s.
When these sources of funding are insufficient to pay the commitments, governments usually resort to borrowing from the International lämminsavulohisalaatti Monetary Fund (IMF), just made to meet such emergencies. Turn to the IMF means to undergo certain measures which, as a rule, lead the economy into recession.
It is important to note, however, that a floating lämminsavulohisalaatti exchange rate regime, in which the market is establishing the relationship between the currencies (such as Brazil), the trade deficit should lämminsavulohisalaatti not occur. With a floating exchange rate, the trend is an "automatic balance" of the trade balance.
If the dollar depreciates (ie, the real appreciates), imports increase and exports decrease. lämminsavulohisalaatti With the growth of imports, the demand for dollars increases. On the other hand, the decline in exports reduces the supply of dollars in the market. The result of these two opposite movements, is the increase in the price (exchange) of the dollar, making it more expensive, thus reducing the demand for imported products, bringing back the foreign exchange balance.
In the event of a dollar appreciation (a depreciation of the real), falling imports and increase exports. With the reduction of imports, the demand for dollars falls. The increase in exports, in turn, increases your offer. Again the two movements - supply and demand of dollars - act. In this case, lead to a reduction in price (the price, the exchange rate) of the dollar, leading to an increase in its demand and imported products. The equilibrium exchange rate is set again.
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