eli5: How are currency exchange rates set?
In: Economics
Most of the currencies are based on “floating rates”…. if there is more demand for the currency, it’s worth more (if more people are buying it up, it’s value increases) and vice versa! Also note that if the value is more and you compare it to the US Dollar, it should be closer to 1 i.e. 1 USD = 1 Unit of the currency (really really strong)
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