Which are the factors that determine the foreign currencies supply?The foreign currencies market is the market in which the different foreign currencies are marketed and it is constituted by many agents from all over the world.
The exchange rate that a nation adopts is a fundamental factor to generate a major supply of foreign currencies. Which allows the exchange rate is the conversion of the currency of a country in the currency of other country, making easier the international commerce of goods and services and with this, facilitate the income of foreign currencies as a consequence of the exchange of goods.
Foreign currencies supply is determined according to the amount of foreign currencies that come into the country, either for exports of goods or services, or for the performance of the investments in other countries.
In emerging economies, the devaluation of the currency is usually one of the most efficient methods to generate a greater supply of foreign currencies. In Latinamerica, for example we find two very different economies where the level of devaluation is very different and this answers to different causes.
Argentina and Brazil are the strongest economies of South America. Argentina after the terrible crisis of 2001 decided to devaluate the peso to generate a major supply of foreign currencies in its frontiers to incentivate the exports.
The case of Brazil is very different to the one of Argentina as this has an important industry and did not have such a crisis in these last years, that’s why its currency is not devaluated according to the dollar. The Brasilian real quotes actually at 1,83 reales per dollar, while the argentine currency is at 3,20 pesos per dollar.
To sum up, the exchange rate that a country has is to generate or not a major supply of foreign currencies, this decision will show the direction in which the economic model is going.

Which factors intervene for generating the evolution of the foreign currencies?. At the Stock market there are many actors that influence on the evolution of the foreign currencies. For example non financial companies, exchange brokers, people in charge of Commercial Banks to influence on bank activities, multinational companies, commercial banks that act as mediators among the ones that supply and those that demand foreign currencies and at last, the Central Banks. On this depends, not only the exchange rate, but also the monetary system, this entity politics modify the incomes in dollars, making them become national currency. Of all these factors depend the evolution of foreign currencies but fundamentally what is important is the exchange rate, this is one of the most important factors while measuring the evolution of the foreign currencies of a nation. The exchange rate is fundamental in economy and also as a thermometer of the evolution of foreign currencies. To establish an exchange rate is important as it allows the conversion of the currency of a country in the currency of other country, making international commerce of goods and services become easier. The exchange rate will determine the competitivity of the foreign currency and of the products of a country, for example agricultural products that are generally exported.Nowadays the evolution of foreign currencies is measured compared to the reference currency that is the dollar, eventhough what happens in the actual world is that the devaluation of the American currency generates an automatic evolution of the foreign currencies all over the world.