Hello! I would like to know why do currencies carry different weights and values when exchanged? Thank you!?

Answer 1

Currencies fluctuate based upon supply and demand. When there is great demand for a currency (due to increased transaction demand for money, or an increased speculative demand for money), the currency value goes up.

This is closely tied to the GDP of a country and the employment rates. (When people aren't working, they aren't spending money)

Governments can do things like changing interest rates to manipulate this.

For instance- Canada's currency has risen because our economy is booming and employment rates are high. The US, on the other hand is in a recession.

Answer 2

Currencies are bought and sold as a commodity on the open market so on any given day, the exchange rate from one currency to another is dictated by it's closing price from the previous day.

Answer 3

the value of each countries currencies depends the amount of gold that they own and the amount of bills that they release there fore when u exchange money between countrie like mexico and the US the US having more gold and mexico having less the dollar would b of higher value than the peso . i hope i explained it correctly

Answer 4

it depends on their countries economy worths or resources. its being impose or designate the rate to have their currency valued and marketed in the world, their rate fluctuate base or depends on their current status.

Answer 5

it's because some countries have more money than others, therefore the value of their dollar will be different as well as the value of general merchnadise.