How is dollar value determined? Can it ever drastically change?

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Like say I have the Zimbabwe note for 100 trillion dollars, which is only worth 40 cents USD right now. Will it ever change so that one zimbabwe dollar get even a little close to a cent USD? That would effectively make anyone who owned that note a multibillionaire.

In: Biology

2 Answers

Anonymous 0 Comments

There is a market for US dollars and Zimbabwe dollars. The traffic in USD is very high, so when you want to buy or sell then there is a narrow range of prices available to you. When more people want to buy than sell, the price goes up, and vice versa. Same with all floating currencies.

However, the volume in USD is very high, so it would take a lot of people to decide that USD are worthless for the price to go down much (or up much). All those people changing their mind seems unlikely.

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