The supply of a currency refers to the quantity of that currency available in the foreign exchange market. It is determined by factors such as government policies, interest rates, and economic conditions.
Related terms
Demand for a currency: The desire and willingness of individuals and institutions to buy or hold a particular currency.
Foreign exchange market: A decentralized global marketplace where currencies are traded.
Balance of payments: A record that summarizes all transactions between individuals, businesses, and governments in one country with others over a specific period.