Foreign Exchange Simulator
What makes a currency rise or fall? Change market conditions and watch supply, demand, and the exchange rate respond.
The market for domestic currency
A higher exchange rate means appreciation.
Equilibrium currency quantity: 100 (index). No net change from the baseline.
The market starts in equilibrium. Choose an event to see what changes.
What is this?
An exchange rate is the price of one currency in another. Buyers create demand for domestic currency; sellers create its supply. In a floating exchange-rate system, their intersection determines the rate. All other factors are held constant.
How to use it
Choose an event and compare the solid curves with the dashed starting curves. Tourism means inbound tourism here. The rate is quoted as foreign currency per domestic unit: up means appreciation, down means depreciation. These are illustrative shifts, not forecasts.