To keep the exchange rate constant, an increase in the demand for a country's currency should be matched by a corresponding increase in supply to be administered by the government.

If the demand for a country's currency increases but the supply remains the same, the exchange rate will rise. To keep the exchange rate constant, the government can increase the supply of currency to match the increased demand. This can be achieved by purchasing foreign currencies and/or decreasing interest rates, which will promote investment and inflow of foreign capital that can then be converted into the country's currency.