![]() In other words, most of the central banks throughout the world keep CAD as the reserve currency. The central bank or the government will use effective strategies to make their currency more favorable.ĬAD, or Canadian Dollar, is the official Canadian currency, and is considered the benchmark currency. To maintain the exchange rate, the country's government will purchase or sell its currency against the currency to which it is pegged.Ī significantly high or low currency can affect a country's economy negatively as it will impact the trade and the ability to pay off debts. For CAD-INR, it will be the Bank Of Canada and the Reserve Bank Of India. The government determines it via its central bank. The most common are the changes in the interest rates, inflation reports, manufacturing data, commodities, unemployment rates, and GDP.Ī fixed-rate is also called a pegged rate. You can find countless economic and geopolitical announcements affecting the exchange rates of two currencies. The demand for a currency's supply determines the currency's value concerning another currency. The market forces of supply and demand help to determine the floating rates. The following are the factors that help to determine the exchange rate: The exchange rates are relative, and Canadian Dollars in Rupee rates are affected by the economic health of countries and other factors such as the inflation rate. Countless factors help determine the exchange rates, most of which are associated with the trading relationship between the two countries.
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