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’s based on a number of factors, the largest of which is confidence/faith. If a country’s banking system looks like it’s having problems or might have problems, this will cause the relative value to fall.
The next ones are industrial output, how much “stuff” is that country making or providing as a whole. A country that is providing nothing has money that nobody is terribly interested in because, well, there’s nothing to buy in that country.
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