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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Quite simply, exchange rates change. When you exchange your $100US for $102FR, you no longer have any US currency. It’s all Francs. So in six months, when the exchange rate is no longer 1.02 FR/US, but instead it’s 1.10 FR/US, if you exchange those Francs back into US Dollars, you will have only ~$95US.
The momentary rate of exchange matters very little (like going on vacation). To people who exchange large amounts of currency, or who hold it for long periods of time, actual and expected trends in currency exchange rates very much matter.
A country’s economy determines prices for goods and services. Unless specific vendors will alter their price to receive funds in a preferred currency, goods and services cost you the same amount of monetary value, regardless of denomination held. In fact, relative economic performance between currency bearing nations is a big factor which helps set the rate of exchange between their currencies. Buying its currency is wise if you believe a nation has betters years ahead.
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