How does it help? Or does it not? Who does it hurt? How does all of this work?
In: 1
It means your currency is worth a lot more of someone else’s currency. It means that it’s a lot easier for the strong country to buy from the weak country, but it’s also a lot harder for the weak country to buy from the strong country. But once the weak.country has that strong dollar from the string country, they can buy from another weak country using that same strong dollar.
Let’s say country A uses $A as their currency. A loaf of bread from country A costs 1$A
Country B, loaf of bread costs 5$B
If the exchange rate from $A to $B is 2:5, then in country B, a loaf of bread costs 2$A. That means someone from country B can buy a loaf of bread from country A for 2.5$B instead of 5$B. So the person from country B saved money. And now the person from country A has $B money that they can then go spend.
In this case, $B is the stronger currency because it has more buying power than $A.
To make a currency strong, it just needs to undergo inflation slower than the majority of other currencies. Inflation is the devaluation of currency, so if your inflation is faster than everyone else’s, by comparison, your money is weaker.
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