A rise in SA's net exports will increase the demand for the SA rands in the market for foreign currency exchange and the rand will appreciate in value.

Question

Quizplus · Accepted Answer

An increase in net exports means that there is a greater demand for South African goods and services from foreign countries. This leads to an increase in the demand for South African currency in the foreign exchange market, which will drive up the value of the rand.

A Rise in SA's Net Exports Will Increase the Demand