[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

580 views

[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

6 Answers

Anonymous 0 Comments

If a dollar was worth 0.5 pesos, the peso is worth half as much as a dollar. If 0.5 pesos was worth one dollar, the dollar is worth double the peso

You are viewing 1 out of 6 answers, click here to view all answers.