Capital flows measure the amount of money flowing into and out of a country or economy because of capital investment purchasing and selling.
When a country has a positive capital flow balance, foreign investments coming into the country are greater than investments heading out of the country.
A negative capital flow balance is the direct opposite. Investments leaving the country for some foreign destinations are greater than investments coming in.
With more investment coming into a country, demand increases for that country’s currency as foreign investors have to sell their currency in order to buy the local currency. This demand causes the currency to increase in value.
Status:: #wiki/notes/mature
Plantations:: Finance - 20230221102436
References:: Babypips