The KRW-USD exchange rate is the worst it’s been for decades, and that’s not even factoring in inflation.
When traveling home this summer, basically, I’ll be earning 20-25% less than before.
Any simple explanations?
In: Economics
It means a lot of people have KRW they want to sell and not very many people that want to buy KRW.
Currencies are just like anything else you can buy or sell…if you want to buy something with KRW you need to buy it from someone who has it. If a ton of people are trying to sell it it will get cheaper (I.e. a lot of want to get rid of their KRW). If nobody wants to sell then it gets more valuable and costs more. It’s just supply and demand.
I know it’s weird to think about buying and selling currencies themselves but they’re just placeholders for value…think of different currencies as two different objects that people might need to buy or sell, like different cars or houses or Pokémon cards or whatever floats your boat, and it makes more sense.
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