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

You are correct, for a given point in time.

Exchange rates don’t really matter. What matter is change in the rates over time. If your 102 francs suddenly is only worth $90, then francs have gotten weaker relative to the dollar.