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?
In: 0
Supply and demand.
Each country controls how much of their currency there is (with the exception of the EU, where a bunch of countries work together. If country X does a lot of export, other countries will need currency X to buy their products.
A reason the Euro is so stable is that many countries use it. So even if Luxembourg has a slight financial crisis, the Netherlands and Germany and France and all the others compensate.
Latest Answers