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’re an investor, you really want to stop investing in Germany and start investing in china. You need to sell your franks to someone that wants them and buy yuan from someone that doesn’t. If many people feel the same way, too many franks are for sale and too few yuan. So you get less buying power from selling franks that aren’t highly sought and even less from buying highly demanded yuan. if you normally traded 10 for 10, you might now have to trade 14 for 8.

in short, money is a commodity in demand like anything else.

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EDIT: Swiss vs Germans, frank vs franc. embarrassing, but I’m not changing it.
let’s assume the man was selling his German hotdogs as Donaldtrumptinyhands suggested.