Foreign currency gaps

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4 Terms

1
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what is foreign currency gaps

when net ‘exports’ and foreingn currecny is greater than the net inflows

2
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what does foreign currecny lead to

foreing currency gaps lead to a deprecation of the currecny

<p>foreing currency gaps lead to a deprecation of the currecny </p>
3
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startegy to reduce foreign currecny gap

increase FDI

Increase diversification

4
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evaluation for stratefy

impacts of diversification of the currency gap will only be seen in the long run

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