Question

When the currency of the Philippines suffered (meaning Peso to Dollars exchange), while the US Dollars...

When the currency of the Philippines suffered (meaning Peso to Dollars exchange), while the US Dollars are unaffected, what will be the effect of this scenario on the market?

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Answer #1

ANSWER ::

=> When Philippines Peso Suffered Against Dollar and Dollar Is Unchange which Means If $1 = 50 Peso And If Peso Suffered And Exhange Rate Goes to $1 = 60 Peso It Means Peso Is Depreciated And the Value Of Peso Is Decrease. So When Peso Is Depreciated It affect The Import And Export Of The Philippines. When Currency Is depreciated It Increase The Export Of The Philippines Because Philippines Goods Is Now Cheaper For USA And USA goods Become Valuable For Goods. One The Other Side Philippines Import Is Decrease Because Of The suffer Of Peso Against Dollar.

This Effect The Philippines Market Becase When Currency Is Depreciated It increase The Export Of The Philippines And It Increase The Production And Aggregate Demand Of The Philippines Goods and Services.

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