So in my country they say we soon reach a record low value of 365 HUF/EUR and i was thinking, who has the authority to justify this value and how it is calculated?
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Anything and everything only has value because someone else will give you something for it. That’s it, no other reason.
Currency rates are the result of a lot of people making individual decisions about exchanging one currency for another, all day long. Their sum total efforts are the currency markets, and the “going rate” is what gets published. But each individual transaction in those markets is going to go for a little above or below that rate, as two people both think they’re getting an edge on the overall value of the deal. One of them is wrong every time, but they all think they’re right, so they keep going. If enough people try the same direction, the “going rate” changes.
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