IGCSE Economics Chapter 6.3 Foreign exchange rates (Updated for the 2027 syllabus)

#ForeignExchange #ExchangeRates #igcseeconomics

This video explains foreign exchange rates, covering the definition of exchange rates, why currencies are bought and sold, and how demand and supply determine the equilibrium exchange rate. It explores the causes of exchange rate fluctuations, such as changes in trade, interest rates and speculation, and the effects of appreciation and depreciation on imports, exports, inflation and growth. The lesson also considers the wider consequences of exchange rate changes for consumers, firms, governments and economies. Clear, concise and exam-focused, this guide equips students with the knowledge to master Chapter 6.3 Foreign Exchange Rates and perform with confidence in their IGCSE Economics exams.

Timestamps
00:00 - Intro
00:34 - Trade in goods an services
1:10 - Speculation
1:29 - Government intervention
1:51 - Payment between countries
2:19 - Workers remittances
2:45 - Investment in capital goods between countries
3:21 - Floating exchange rate
4:23 - Changes in exports and imports
4:42 - Interest rates
5:01 - Speculation
5:47 - Government intervention
6:30 - Customers
6:47 - Exports
7:03 - Importers
7:23 - Balance of payments
7:37 - Employment
8:06 - Inflation
8:24 - Economic growth