I want to know how exactly the amounts for exchange rates are determined and I have been searching in google but I still don’t get it. For example how do they set that US $1 = 57 Philippine peso?
In: Economics
In addition to other answers there can be international political support for a currency. The Unification of Germany was supported by, and indirectly helped to fund, international assistance to support the Deutsch Mark,DM, (as it was then, and a major currency). This allowed the huge economic disturbances to happen with little external economic impact which would have been caused by a falling DM.
Latest Answers