Floating Exchange Rate Changes - Appreciations and Depreciations

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Hi Sir, for depreciation, would a decrease in demand be valid as well? Or an increase in supply is a better approach

There has been an increase in supply of the pound as less people want it

Very well explained. Good job.

Many thanks!

confused about the first point for the supply graph. if interest rates decrease, wouldnt it just decrease the demand for the pound, and cause demand to shift left, instead of supply shifting?

Thank youuu

Why does one shift the demand but the opposite shifts the supply? Shouldn't the 'opposite' also shift the demand curve but in the other way ?

Thankyou so much sir

Please clarify to me that going GBP/USD=1.60 to GBP/USD=1.80 is a depreciation of GBP. But you have taken it as appreciation. How come?

I don't understand why you say the supply increases when someone exchanges the pound for another currency. Isn't there someone on the other side of that trade who is now just holding the currency you used to hold so there's no net increase in supply? What am I not understanding

What is the effect of exchange rate on import??

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The currency of a country can also appreciate if tourism is in demand for that country. For example, the US may demand Indian currency to visit India for seeing the Taj Mahal and/or other sites as well.

Why is the opposite of an increase in demand an increase in supply not a decrease in demand?

Thanks a lot for making the topic so clear to understand

Thanks so much mate!! 👏
Great understand=better test grades

When Q1->Q2, does the quantity of the currency increase?

Now, I understand domestic currency appreciates whenever the value of domestic goods increase. Plus, in order to purchase such goods, foreigners need to typically purchase that country’s domestic currency. This means that the demand of that currency increases when there’s an increase in quality of goods.

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Most helpful - thanks very much.

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How is a fall in demand for the pound different from an increase in the supply of the pound?

so does increasing supply, is also a decrease in demand? Im confused since the points for increasing supply is the opposite of the increase of demand?

Thank you!

Dal > riley

Hi, why does people wanting to exchange their pounds for another currency mean a shift to the right in supply? Surely that means a contraction in supply (because their are less pounds), as a result of a fall in demand of pounds (as people are changing their pounds into other currencies).

Cheers gaffa

So would the depreciation of GBP in response to Brexit (economic uncertainty) be due to a decrease in supply or decrease in demand?

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SO helpful

perfect explanation

i thought supply curve is solely determined by goverment?
isnt the goverment the one who controls the print of the currency and therefore the supply of that currency?
i could be wrong i will appreciate if you can enlighten me up a little bit

Hi! I wonder what would lead to a shift in the supply curve to the left (i.e. how does it work?) I understand that if individuals are not confident with a currency, they would supply that currency and the S will shift to the right. But what makes an inward shift of its supply?

Great video! Could you maybe explain a little more about speculators? I'm confused on how they can have a role in appreciation or depreciation.

These are amazing! I do IGCSE Economics but a lot of the syllabus overlaps. Thank you so much! Definitely the best economics videos I've watched.

So when the demand increases the price rises, i understand that. But the quantity also increases, what does that mean because surely the price would be the only thing that changes because the more expensive it is the less quantity you can buy and vice versa so why when the price increases can we buy more

Is this all for the Edexcel examboard (AS)?

what does it mean when 'the exchange rate has increased'.
Also great video :)

thank you very much, that was helpful

Thank You, you're videos are very informative and an excellent guide to someone like me; beginning to learn economics.