if you send 200$ to ghana and its worth over 9,000$ is it still only 200$?

Question

im a little confused on foreign currenceys, im using africa as a example because i noticed how much americas money is worth there, can someone explain to me the money system? if a item is 500$ there is it really 500? like us money? im confused someone answer, thanx

Answer 1

It refers to what equivalent that amount of money would buy in the US.

It sounds like you're talking about the relative value based on cost of living. So, what might cost $9K in the US could be purchased for (in local currency equivalent ) of $200. So, taking $200 over there would allow someone to purchase much more than they could get with that amount of money here.

Another Example. I used to work for a company that had salesfolk and distributors all of the world. The pay was on commission basis, based on how many actual sales they sponsored.

Someone could easily earn $100 to $200 per month, working part time. Not much here. But in the Philippines (one of our big distribution areas) that was the average monthly salary of someone like a high school teacher or police detective, and a doctor or lawyer (here making $10K or more per month) made only $400 to $500 per month.

So, when we paid someone in the Philippines a commission of $200 for a month, that would be enough for them to pay rent and feed a family of four comfortably, based on the different cost of living there.

As to the other part of the question, each countries currency is different, and most large banks will convert one currency to another. Like changing coins into dollar bills. But the important issue is not the conversion between the forms, but the relative cost of living.

Answer 2

It is still $200 to you or in America but American money goes much further in some African countries. So your buying power would be Greatly Increased. Many people there earn less than $1000 per year and even bums here make more than that, people on welfare here have more $ than most people in Africa. So 50 could be equal to what they would make in a month.

Answer 3

It's complicated, so let me explain it with this example. Im an Australian, and 1 Australian Dollar buys (roughly) 30 Thailand baht.

So, If I change Aus$100 into Baht at this rate, Im going to get 3000 baht. (100x30).

Now, If I change it BACK to Australian dollars, Im only going to get my $100 back (probably less once commissions are taken out etc.) So really, all you are doing is changing the number shown, the actual VALUE of the money remains (approximately) the same.

Answer 4

That's not how it works at all. If anything, $200 is worth 9000 of whatever their currency is. If what you said was true, move to Ghana and be a freakin' millionaire.