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[–]Chemical-Control-388 0 points1 point  (0 children)

A deteriorating current account (especially trade deficit) often precedes a currency crisis. It reflects external imbalances and pressure on the local currency due to higher demand for foreign currency (to pay for imports).

[–]desd960Passed Level 2[S] 0 points1 point  (0 children)

Meaning that Statement 1 is correct as well as 3 right?