like wat i said dat 1 INR = 50 US $.... how do anyone set da values of currency of one nation....... Who does dis work of DETERMINING da value of currency to a nation... IS IT DA WORLD BANK???????
2007-01-31 23:29:25 · 6 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
1) You are wrong, it's 50 INR = $1 !!!
2) You have a strange pronounciation for the "th" sound...
3) 2 cases:
- The rate is fixed primarily in each national stock exchange. It depends thus on offer and demand for both currencies. Then each money changer decides which rate he will use, taking the S.E. rate as reference.
- In few coutries, the rate is fixed by the state. Money changers are state oficins. Because the rate is not regulated by a market, there is usually change restrictions such as you cannot change back more that you changed to the country's currency.
2007-01-31 23:40:41 · answer #1 · answered by bloo435 4 · 0⤊ 0⤋
It depends on the simple theory of demand and supply. For example a country like USA exports and imports many goods and the transactions are carried out in dollars.In the country which is importing the products, the demand for dollars increases and hence its value goes up in relation to the currency f that country. If the supply of dollars is more then its value will get lower. Another reason why India s currency is inferior to that of other countries is because of devaluation ., i e deliberate reduction in the value of money.
2007-01-31 23:58:23 · answer #2 · answered by anu2688 1 · 0⤊ 0⤋
There is no single person/agency that determines the exchange rate. The exchange rates are determined by the dynamics of forex market (basically a network of forex dealers across the globe). Its predominantly derived by demand supply patterns, the strength of the economy of the country of the currency and the interest rates prevailing in the country of the currencies (or in other words the earnings you can get if you invest in that currency)
2007-01-31 23:45:17 · answer #3 · answered by BANKIT 1 · 0⤊ 0⤋
When will this happen !!!
Imagine the world when 1 INR = Rs.50.00
2007-01-31 23:46:11 · answer #4 · answered by Sri Ram t 3 · 0⤊ 0⤋
By auctions, supply and demand. Since most countries do not go by gold standard.
Use to be by gold standard.
2007-02-01 00:03:06 · answer #5 · answered by minootoo 7 · 0⤊ 0⤋
depending only demand not depends actual value
2007-02-01 00:45:27 · answer #6 · answered by keral 6 · 0⤊ 0⤋