2007-12-06 19:17:59 · 5 answers · asked by ahmeda9661 1 in Politics & Government ➔ Government
Governments don't; it depends on how much faith the world's economic organizations have in the performance of a particular country's currency compared to other governments' currencies. Somethings can affect this value such as setting interest rates, ammount of currency in use, etc but the trade rate is near impossible to control. Within a country, if it believes in capitalism, it is mainly supply and demand. Communist countries often dictate how much their currency will buy inside their own country but that usually results in their money being worthless internationally.
2007-12-06 19:59:30 · answer #1 · answered by Caninelegion 7 · 0⤊ 0⤋
It doesn't. International currency does which is based on how much of a country's currency is in circulation. It there is more than what a country produces relative to other countries, then the currency inflates, the currency becomes worthless and the economy collapses, which our's is going to do at any moment. Oooops! There it went!!!
2007-12-06 20:05:49 · answer #2 · answered by Cotton Candy Lady 5 · 0⤊ 0⤋
The government does not determine it. Just like any comodity, currency is bought and sold on the open market. Just like any comodity, the amount that buyers are willing to pay sets the value or price.
2007-12-06 19:26:09 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Currency values are determined by the market. Monetary policy has some influence as well.
2007-12-06 19:51:31 · answer #4 · answered by Jeff F 3 · 2⤊ 0⤋
The Value of GOLD in Ft. Knox , Stock Markets & interest rates.
2007-12-06 19:24:57 · answer #5 · answered by Q48x 4 · 0⤊ 3⤋