Demand for a currency

Definition

The demand for a currency represents how much individuals, businesses, or governments want and are willing to pay for that particular currency. It is influenced by factors such as interest rates, economic stability, and investment opportunities.

Related terms

Supply of a currency: This term refers to the quantity of a particular currency available in the foreign exchange market.

Balance of trade: This term measures the difference between imports and exports in terms of monetary value between countries.

Speculation: This term describes buying or selling assets (including currencies) with hopes of making profits based on future price movements.