Every county has its own currency
and its patrons know how to use it but everything you know about your own
currency changes when you are dealing with another country.
The rate given by one country for
another countries currency is called the currency exchange rate. The daily
exchange rate for the rest of the world is made according to the rates used
when two banks trade between different countries. Rates of currency are always
fluctuating and that can be a major barrier to trade because the buyer could
end up paying way more than intended.
When a country’s currency is
devalued in relation to another countries currency it means the country with
the lower value can sell more because the other country saves money. However,
it discourages the devalued country from buying the goods and services from the
country with the higher currency value because they would pay more for less.
Bachubira Zaituni
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