BOP

Chirantana · April 6, 2015, 11:15pm

Hello,

Please help me to know how depriciation of currency stabilize external debt on a country?

Thanks

MrSmart · April 7, 2015, 9:38am

A better balance of trade?

Chirantana · April 7, 2015, 7:59pm

Hi Smart ,

Did not get ?

MrSmart · April 8, 2015, 5:47am

Depreciation of a local currency can lead to a more stable flow of foreign currency through more exports and less imports,. This could stabilize external debt through a balance of payment surplus, or a steady flow of foreign currency.

This is how I would think about it. I’m not sure if this is what’s implied.