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Essay Galaxy - Monetary Devaluation MONETARY DEVALUATION

Like every other product the coin of a country has a price, which is the exchange type; this represents the quantity of Mexican pesos that are needed to buy an American dollar, and like every other price this one is determined because: a) Because of the offer and demand of dollars, or b) Because of the monetary authorities of the country. The origin of the exchange types comes from the necessity that residents of one country have to buy another country's money in order to cover their international debts. In Mexico's case, residents demand dollars to buy goods and services from the exterior (imports); the offer of dollars comes from the selling of goods and services to the exterior (exports) as well as the income of capital such as foreign savings or direct investment. When imports and exports are not balanced the offer and demand of dollars is altered, which....

Number Of Pages: 3 Number Of Words: 729

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