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The first factor that influences in a great degree is productivity. High productivity means more goods for export, which leads to an increase in the national GDP. Furthermore, increases in productivity also influence society more broadly, by improving living standards, creating income, and generating economic growth...
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A continuous decrease in productivity leads to lower national GDP and in order to compensate, the external debt is increased. As a result, the currency of the country sustains heavy pressure and falls against other currencies.
Disparity of demand and supply ratio
Due to disparity of demand and supply many problems occurred: That could be rise in price of goods and services, if more import is their than demand could then it could lead to the heavy scarcity of the foreign exchange in the country, and which will in turn lower the value of the currency of that country...
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