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How does the weakness or strength of currency affects exchange rate and how do you know which currency is strong or weak?
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What is the purpose of an exchange rate?
It's important to know the strength of the country's economy through the stability of exchange rate movement and the degree of change, and to know how the economy of the country's trade balance is during any movement of export s and imports. It's also affects the exchange rate on the purchasing power of the individual. In addition, exchange rate benefits by knowing the government policies wither economically or politically, as it affect stability in general and a stable exchange rate for the local currency against foreign currency.
Does the law of supply and demand affects currency exchange rates?
Yes. Nominal exchange rates depend on the flow of the currency itself and its availability between countries. As currency is harder to get and in demand, its nominal asking rate increases and vice-versa. This was more important in the past (i.e.) 16-17th century Europeans looking for gold in the mercantilist system) than it is now.
What are the various factors which affect exchange rate?
When a country exports goods that other countries want to import, that makes their currency valuable. The balance between imports and exports affects the exchange rate. Since this is also a matter that concerns investment, people will be more likely to buy a currency based upon their confidence in the country that issues it. So a whole national economy is assessed.
Relationship between balance of payments and exchage rate system?
The balance of payments describes the relationship of import, exports, and their payment transactions between countries. How these payments are made and their value is closely related to the exchange rate system. In general, the real rate of exchange between two countries depends on their price levels and these price levels may vary through trade and production. However, nominal exchange rates depend on the level of trade to provide currency because the relative value of currencies depends on how much of one country's currency can be used to buy the currency or products of another. In general, since the balance of payments reflects this relationship of transaction, it directly influences nominal exchange rates and indirectly affects real exchange rates through trade.
How much is 30000 pesos in US currency?
Many countries have currency called pesos and they have different exchange rates against the US dollar. Also, several of those countries have revalued their pesos over the years so the age of your bills/coins affects the exchange rate and possibly even their current convertibility. While it's not normal WikiAnswers policy to say "use the Internet", that's the best approach in this case. You can check a site such as www.xe.com, CNNMoney, etc. for the latest conversion factors.
What is the purpose of an exchange rate?
It's important to know the strength of the country's economy through the stability of exchange rate movement and the degree of change, and to know how the economy of the country's trade balance is during any movement of export s and imports. It's also affects the exchange rate on the purchasing power of the individual. In addition, exchange rate benefits by knowing the government policies wither economically or politically, as it affect stability in general and a stable exchange rate for the local currency against foreign currency.
Does the law of supply and demand affects currency exchange rates?
Yes. Nominal exchange rates depend on the flow of the currency itself and its availability between countries. As currency is harder to get and in demand, its nominal asking rate increases and vice-versa. This was more important in the past (i.e.) 16-17th century Europeans looking for gold in the mercantilist system) than it is now.
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cold temperature affects the magnets strength by making it stronger
What are the various factors which affect exchange rate?
When a country exports goods that other countries want to import, that makes their currency valuable. The balance between imports and exports affects the exchange rate. Since this is also a matter that concerns investment, people will be more likely to buy a currency based upon their confidence in the country that issues it. So a whole national economy is assessed.
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Relationship between balance of payments and exchage rate system?
The balance of payments describes the relationship of import, exports, and their payment transactions between countries. How these payments are made and their value is closely related to the exchange rate system. In general, the real rate of exchange between two countries depends on their price levels and these price levels may vary through trade and production. However, nominal exchange rates depend on the level of trade to provide currency because the relative value of currencies depends on how much of one country's currency can be used to buy the currency or products of another. In general, since the balance of payments reflects this relationship of transaction, it directly influences nominal exchange rates and indirectly affects real exchange rates through trade.
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