If Walmart were treated as a separate country, it would act as the fifth largest importer of products manufactured in China, placing it ahead of Russia and the United Kingdom. The company accounts for more than 10 percent of all U.S. imports from China. To obtain all the Chinese products it sells in its stores, Walmart enters the foreign exchange market and trades U.S. dollars for Chinese currency, the yuan. Thus Walmart single-handedly generates a significant fraction of the quantity of dollar–yuan exchanges that take place in the market for this particular currency. When Walmart buys Chinese currency, its action perceptively affects the foreign currency demand curve.

When Walmart places an order for large volumes of Chinese manufactured toys and furniture, to sell in its U.S. stores, does its actions affect the demand for or supply of yuan?