Demystifying Forex: Rates, Quoting, Demand and Supply

Foreign exchange (forex) is the lifeblood of global commerce, investment flows, and economic integration. This course offers an in-depth exploration of how forex rates are determined, the forces that influence them, and the fundamental economic principles of demand and supply at work in the foreign exchange market. Whether you're a student, finance professional, or global economics enthusiast, this course will provide the foundational knowledge needed to interpret currency movements and navigate the global financial landscape.

The course begins by explaining the meaning and relevance of forex rates, along with the concept of quoting currencies in pairs. You will learn about the two primary methods of exchange rate quotation—direct and indirect—and why they are used differently in various countries. Through real-world scenarios, the course examines who demands foreign currency and why—ranging from importers, investors, and tourists to speculators and corporations hedging against risk.

We will analyze the reasons behind the downward slope of the forex demand curve, and understand how imports and speculative activity increase the demand for foreign currency. On the supply side, the course explores how exports, foreign remittances, and asset sales by domestic residents contribute to the availability of foreign currency.

By the end of the course, you will grasp how currency values are shaped by the interaction of global economic forces and human decisions. You will understand why exchange rates fluctuate and how different market players influence demand and supply. This knowledge will empower you to interpret forex trends, evaluate economic policies, and make more informed financial or business decisions in a world where currency value plays a central role.