How can a currency lose its value?
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Most people will be doing supply reasons (the creation of money because that’s all the rage these days)
The flip side is Demand, whether people actually want the currency. And we’ll briefly go over that.
Consider country A with currency X. A is a nice country, peaceful, hard working people, everyone likes them. But then they have a revolution! A power hungry madman seizes power turns it from a democratic paradise with lawful institutions into a dictatorial hellhole.
What does this mean for currency X?
Before, you had tourists and investors who wanted currency X so they could buy stuff in the country (souvenirs and fancy cars and etc). Now? Now no one wants to visit or spend any money there at all. So currency X loses value as everyone seeks to get rid of it (money you can’t spend isn’t really money at all).
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