The exchange rate for each country each day has to change at all times, which is a problem in the buying and selling of goods of the buyer and seller. Where foreign exchange is caused by the following: 1 research pai. interest rate as the interest rate is determined by the Central Bank of the country. If the Central Bank of the country, but given the interest rate is not equal to making all investors are moving money to invest in countries where interest has been assigned the high bank. Make up, money has changed. 2. economic growth due to a strong economy, country, the Central Bank is likely to increase interest rates. Thus, the higher interest rates will pull the dutkrasae foreign investment comes in. Make your money worth more themselves. 3. the geopolitical risk political stability pose obstacles and risk capital investors often are rocking out before investments until they see a more stable. 4. trade and capital flows should be considered during the separate revenue from international trade, with the flow of foreign capital into investment. Affect the current capital inflow volume out of the country because of how much the direction of exchange rate movements, according to impact, and 5. the merger of big business, because when one is in the acquisition of a company in another country, there will be the need to exchange the currency to be used in such assets. The currency is volatile in the short term.
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