Why do exchange rates matter if items have equivalent costs in the respective countries? (more inside)

Question

Say that my country with a currency called “X” has an exchange rate of X10/$1 so 10 X = 1 dollar but a burger in the US is equal to $1 while the same burger in my country is equal to 10 X then why does an exchange rate matter if we can still get the equivalent items just in our own currencies?

In: 7

Answer 1

Exchange rates change. If tomorrow the exchange rate is 7x = $1 but a burger in your country is still 10x then a burger in dollars is more expensive to you.