what determines the strength of a country's currency and how will the collapse of the U. S. dollar affect?

Answer 1

A currency's "strength" or exchange rate is simply determined by supply and demand for that currency among people foreign to that country. Now there's tons of things that influence both supply and demand -- you could write an encyclopedia about that.

Not sure what you are imaging about a "collapse" of the US dollar -- the dollar goes up and down from time to time but a "collapse" has not happened -- just ask the American auto executives who incessantly whine that the Japanese Yen and Chinese yuan are undervalued to the dollar. A collapse would not happen unless there was a collapse in demand for the US dollar, and there is virtually zero chance of that happening. (If you were a smart foreign investor you'd be scooping up all the dollars you could get your hands on while it's cheap -- which is what a lot of smart foreign investors are doing.)

Answer 2

the linked fee of a international places overseas money is determined by using countless ingredient even with the very undeniable truth that really 2 are properly worth declaring it. One, only placed, is provide and insist. the utmost traded currencies are the dollar, Euro, and Yen. they have a intense replace fee because they administration their marketplace zones and all international banking transactions are performed in that overseas money. the 2d is an oblique courting to investments and a 'threat usa ingredient.' The more desirable investments and the the better letter grade (A being the utmost) receive by using a rustic also help be sure the linked fee of this is overseas money. GDP even with the very undeniable truth it is a ingredient, has little to do with the really fee of overseas money replace. The Yen isn't valued low in any respect, in evaluation the dollar is affordable compared to the yen. the reason that $a million is worth 118.31 is using inflation in Japan.

Answer 3

If the US dollar collapsed, the entire world economy would be sent into a depression. The USA has, I think, 75 trillion dollars of debt to other countries. If the US dollar suddenly crashed, then all those other countries would lose that money too.

Answer 4

The present dollar rate is more of a steady decline than a collapse but it may not have hit the bottom yet.
Oil is bought and sold in dollars, so if the dollar is weak the cost of a barrel of crude will probably rise.... again.

Answer 5

for a freely-floating currency, it is straight-forward demand and supply. the rate of buying and selling of a currency to pay for imports, as well as to invest in a county's financial system determines the ex rate. it used to be linked to gold, but not anymore

Answer 6

its actually the stock market that dictates the strength of the country's currency.... hehehehehe..... its actually the gold deposit that determines the Gross NAtional Product and the strength of the money the country has....

Answer 7

baby boomers