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
The value of money is determined by the demand for it, just like the value of goods and services. When the demand for Treasurys is high, the value of the U.S. dollar rises. The other way is through foreign exchange reserves. That is the amount of dollars held by foreign governments.
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