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What is the impact on currency when there is foreign investment?
Wiki User
∙ 8y ago
In my opinion when there is foreign investment, there will be more demand on the country which is invested. Therefore, its currency is appreciated. Besides, that would help to boost the economy, so the currency will go up.
Wiki User
∙ 8y ago
Foreign investment can have both positive and negative impacts on a country's currency. If there is a significant inflow of foreign investment, it can increase the demand for the country's currency, leading to an appreciation in its value. On the other hand, if foreign investors withdraw their investments, it can decrease the demand for the currency and lead to its depreciation. The impact ultimately depends on various factors such as the size of investment, overall economic conditions, and market sentiment.
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