Eli5, how can the the Chinese Yuan be cheap when they have a strong economy while Jordanian Dinar is the opposite?
In: 19
The strength of the economy and the value of the denomination is completely unrelated. When a government introduces a currency they can pick any value they want for this new currency. And the value is affected by previous periods of inflation which have since been corrected. Compared to the US cent the Chinese Yuan is quite expensive.
Latest Answers