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Discuss the supply and demand of currencies in Lebanon. Foreign Currency in lebanon is liters. Compared...

Discuss the supply and demand of currencies in Lebanon.

Foreign Currency in lebanon is liters. Compared worldwide especially to the U.S. dollars

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The market for the Lebanese currency will be similar to how other currency markets function. The exchange rate for Lebanese liters to dollars at the moment is 1513 Lebanese liters. An increase in the demand for the local currency will mean that the liters currency will appreciate with respect to US dollars. An increase in the supply for liters wull cause the price of liters to depreciate and so more liters will available for 1 US dollar. The equilibrium of the liters market will change depending on the appreciation and depreciation of the liters currency.

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