A country until now has a fixed exchange rate and its currency is undervalued, now the Central Bank is about to float its currency If currency traders are of this then both the demand for and the supply of the currency decreases the demand for the currency increases and the supply decreases the demand for the currency decreases and the supply increases both the demand for and the supply of the currency increase the supply of and the demand for the currency will not change

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Question: A country until now has a fixed exchange rate and its currency is undervalued, now the Central Bank is about to float its currency. If

A country until now has a fixed exchange rate and its currency is undervalued, now the Central Bank is about to float its currency. If currency traders are of this then:

both the demand for and the supply of the currency decreases
the demand for the currency increases and the supply decreases
the demand for the currency decreases and the supply increases
both the demand for and the supply of the currency increase
the supply of and the demand for the currency will not change.

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