The supply (inflow) of foreign exchange comes from the people who receive it due to the following reasons.
1. Exports of goods and services:Supply of foreign exchange comes through exports of goods and services.
2. Foreign investment: The amount, which foreigners invest in their home country, increases the supply of foreign exchange.
3. Remittances (unilateral transfers) from abroad: Supply of foreign exchange increases in the form of gifts and other remittances from abroad.
4. Speculation: Supply of foreign exchange comes from those who want to speculate on the value of foreign exchange.
