Question about maintaining fixed exchange rates In my textbook, borrowing from abroad is listed as one of the method to increase the value of a currency by shifting its demand curve to the right. 

"If the country borrows from abroad, its loans will come in the form of foreign exchange, which when converted into [its currency] will cause an increase in the demand for [it] and hence a rightward shift in the demand curve toward D1."

I (and a group of friends) am not quite sure how this works, given that borrowing from another country and converting the funds to their own currency should increase the supply of it, leading to a rightward shift of the supply curve instead.

Please help us out by clarifying the explanation from the textbook. Thanks!
In my textbook, borrowing from abroad is listed as one of the method to increase the value of a currency


The textbook is wrong. Borrowing from abroad tends to impact the exchange rate in a way that purchase power of the domestic currency decreases. A lower purchase power is the opposite of increased value.