Like why can’t some country say something like “our country’s currency value will be 200 times that of US dollars ” . And who determines this value or how it is determined. And why it constantly changes.
In: Economics
It depends on the policy of the country and the free market. Currency derives it value from the goods they can be exchanges for. If one country sells a car for 200 and another sells it for 100, if that exchange rate isnt a 2:1 (all other things equal), then there would be an arbitrage opportunity (ie someone didnt do their research and underpriced their currency or product relative to the market)
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