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Dear Sir,
I have partly understood this line but would want you to explain me the following line in the clearest way possible:
“Demand for imports in the US represents a demand for foreign currency or a supply of dollars.”Thank you in advance.
Regards,
Rajvir Singh Oberai.It is a bit difficult to explain without seeing the context in which it was written.
However if the US is importing from another country then they will need to buy the currency of the other country to pay for them and so there will be a demand for the foreign currency. There will need to be a supply of dollars to be able to buy the foreign currency (or to pay for the goods if they were invoiced in dollars instead of in the foreign currency),
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