Complex sentence: The demand for foreign exchange is derived from the domestic demand for foreign goods, services, and financial assets, whereas the supply of foreign exchange is similarly derived from the foreign demand for goods, services, and financial assets coming from the home country.
Split into simpler sentences: The demand for foreign exchange is derived from the domestic demand for foreign goods, services, and financial assets. The supply of foreign exchange is similarly derived from the foreign demand for goods, services, and financial assets coming from the home country.