Compared to the US dollar and Euro, for example, the values of the yen and won are low in relation to other currencies.
2006-09-12 14:18:58 · 5 answers · asked by ? 2 in Business & Finance ➔ Other - Business & Finance
It has low values for one of two reasons, the supply or the demand.
In many countries that are not perceived as stable, the demand for their currency is low. The reason that the dollar stays high is that most of the world feels that the government is stable and will be here again tomorrow.
The value could be low because the supply of that currency is high. If a country prints too much money, there is more money to go around and it does not have as much value. Printing too much money causes inflation or prices of goods and services to rise. Nazi Germany at the end of WW2 is a prime example of this happening.
It is more complicated that this, but these are the two biggest reasons I know of off of the top of my head. Currency is valued much like stocks. The price depends on the preceptions of potential buyers.
2006-09-12 14:27:10 · answer #1 · answered by Slider728 6 · 0⤊ 1⤋
Don't listen to the others. They have no idea what they're talking about. It is really irrelevant what the "quantity" is. Just becuase $1 is 180 yen, it does not make the yen "less valuable" than the dollar. When the dollar appreciates so it buys 190 yen instead of 180 yen, sure, the dollar has become more valauble than it was at 180 yen. Since the foreign curency exchange, unless you are on a fixed system, is based on a floating system, currencies are in constant flux. You could say that the yen has become "much more valuable" as it has appreciated from 360 yen a few decades ago to the around 180 yen today.
2006-09-12 17:00:17 · answer #2 · answered by Anonymous · 0⤊ 2⤋
Well, these countries use really large amounts for money. I live in Japan and went to South Korea in June of this year. I wondered the same thing.
Their money system makes it seem as if there money is much lower. In Japan, 100 yen is 100 yen, whereas in America, 100 pennies is $1.00. So if we converted 100 pennies to 100 yen then the difference wouldn't seem so great. It's usually about 14 cents difference when you look at it that way.
2006-09-12 14:28:15 · answer #3 · answered by B F 2 · 0⤊ 1⤋
What do you mean low value?
There is no "cent" in Japanese Yen. Yen is just Yen.
Today's rate is about US$1 = JPÂ¥117
â
US$1 = 100 cents = JPÂ¥117
You need to shift 2 digits (figures).
2006-09-16 11:23:46 · answer #4 · answered by Joriental 6 · 0⤊ 0⤋
they feel richer when they have to add a lot of zeros
2006-09-12 14:32:59 · answer #5 · answered by acid tongue 7 · 0⤊ 1⤋