how is one currency more powerful than another? If you exchange $100 to 102 francs don’t you still have $100 but in francs?

Question

how is one currency more powerful than another? If you exchange $100 to 102 francs don’t you still have $100 but in francs?

In: 53

Answer 1

The instantaneous exchange rate isn’t important. A strong currency is stable. Wild swings in value are destabilizing.

If the currency goes down that’s bad because you suddenly can’t buy as many foreign goods. If it goes way up, also not great – people will buy fewer goods that you produce.