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Lets say weve got two countries: country A and country B And at the start of our little hypothetical thought experiment they have a very stable exchange rate, maybe its one for one. Every A, if you were to go into a foreing currency markets, you could get a B for it. So theres this kind of this stable supplying demand between this two currencies. Now lets say for whatever reason folks in A start to believe that country B is the hot place to invest. They want to buy country Bs real state, they want to invest in country Bs stock market. and so if they wanna buy stuff in B they essentially have to hold more Bs currency and so more and more people in A want to exchange their As for country Bs currency. So you have this huge supply of A comming out to the foreign exchange markets but you still have the same amount of B that wanna go the other way, maybe, you know, these are maybe there to either invest in country A or maybe buy some of countrys A exports, or whatever it might