how is one currency more powerful than another? If you exchange $100 to 102 francs don’t you still have $100 but in francs?
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Value of one currency over another changes over time. Today with your CHF$102 you can purchase USD$100 worth of bananas; but tomorrow it might be USD$60 worth of bananas.
**How?** Most countries’ economies like to have their own value denominator (currency). One of the factors that makes CHF$102 equal to USD$100 today, is how much other economies are willing to pay for francs or dollars today.
**Why?** Swiss people might make great watches that Americans wants; Americans make great computers that the Swiss wants. Swiss will be trying to buy dollars to purchase the computers and vice versa.
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