Skip to main content

Exchange rate determination - calculation


For higher level, you need to be able to understand how to calculate the equilibrium exchange rate in a market. You will need to calculate this from linear demand and supply functions and to be able to plot the demand and supply curves for foreign exchange. You will also need to be able to calculate exchange rates and the prices of goods in other currencies. The presentation below goes through this. Click on the screenshot, or link below, to open the presentation. It will open in a new web window. You will need a headset or speakers to listen to the explanation.