[ELI5] Why is the exchange rate between two currencies not the same going both ways? Like why is the exchange rate of USD to GBP different from GBP to USD
In: Economics
It’s like any unit conversion. You get from miles to kilometers you multiply by 1.609, and to get from kilometers to miles you multiply by the inverse which is 0.622.
The difference between units and currency is that the currency is often based on the ratio of a unit of the desired currency. They have charts for how many dollars it takes to buy one (1) GBP, Euro, Lira, etc.
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