It decreases due to higher transaction costs.

It increases because transactions occur faster and more frequently.

It remains constant since digital payments are neutral to velocity.

Raise export prices since appreciation already increases competitiveness.

Shift focus toward imports as domestic prices fall.

Lower export prices in foreign markets to maintain competitiveness.

It reduces productivity by distorting market incentives

Domestic producers gain a temporary cost advantage, improving export potential.

It has no effect because subsidies do not influence costs.

Capital inflows increase, appreciating local currencies and affecting export competitiveness.

Emerging market currencies depreciate due to reduced global demand.

Inflation falls globally as liquidity declines.

It increases imports due to higher disposable income.

It reduces consumer purchasing power and weakens demand for discretionary products.

It boosts retail sales as inflation expectations fall.

Fix prices in domestic currency to reduce exposure.

Delay export contracts to benefit from higher future foreign-currency receipts.

Accelerate imports to take advantage of lower exchange rates.

Pro-cyclicality

policy

Counter-cyclicality

policy

Pro-cyclicality

policy

Counter-cyclicality

policy

Pro-cyclicality

policy

Counter-cyclicality

policy

Country

A domestic currency will experience depreciation relative to country B currency

Country

A domestic currency will experience depreciation relative to country C currency

Country

A domestic currency will remain stable relative to country B and C currency