What are the sources of supply of foreign exchange?

What are the sources of supply of foreign exchange?
The supply of foreign exchange of a given country stems from the sale of foreign merchandise, services, and capital to that country. When foreigners want to buy a country's exports, they must purchase it currency with their own. Thus the supply of one country's currency available to a second country is closely related to the demand for the second country's currency. When the demand schedule of a given country for a foreign currency is known, the supply schedule of the foreign country's exchange can be frequently derived from it.


BY TAVINDER SINGH
CAREER BUILDER
C-1503 INDIRA NAGAR,LUCKNOW