What are the sources for supply of foreign exchange?

1.	What are the sources for supply of foreign exchange?
Answer» The supply (inflow) of foreign exchange comes from the people who receive it due to the following reasons. 1. Exports of goods and services:Supply of foreign exchange comes through exports of goods and services. 2. Foreign investment: The amount, which foreigners invest in their home country, increases the supply of foreign exchange. 3. Remittances (unilateral transfers) from abroad: Supply of foreign exchange increases in the form of gifts and other remittances from abroad. 4. Speculation: Supply of foreign exchange comes from those who want to speculate on the value of foreign exchange.

Answer»

The supply (inflow) of foreign exchange comes from the people who receive it due to the following reasons.

1. Exports of goods and services:Supply of foreign exchange comes through exports of goods and services.

2. Foreign investment: The amount, which foreigners invest in their home country, increases the supply of foreign exchange.

3. Remittances (unilateral transfers) from abroad: Supply of foreign exchange increases in the form of gifts and other remittances from abroad.

4. Speculation: Supply of foreign exchange comes from those who want to speculate on the value of foreign exchange.

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