The demand for foreign exchange is derived from the domestic demand for foreign goods, services, and financial assets, whereas the supply of foreign exchange is similarly derived from the foreign demand for goods, services, and financial assets coming from the home country.
The demand for foreign exchange is derived from the domestic demand for foreign goods. The demand for foreign exchange is derived from the domestic demand for services. The demand for foreign exchange is derived from the domestic demand for financial assets. The supply of foreign exchange is similarly derived from the foreign demand for goods. The supply of foreign exchange is similarly derived from the foreign demand for services. The supply of foreign exchange is similarly derived from the foreign demand for financial assets. The supply of foreign exchange was coming from the home country.