Hello Guys,
Today I want to discuss an important topic regarding US dollar and the currencies of other fiat money. The main question is that why the Fiat money of different currencies have so much difference?
The fight Between Currencies of different world will never ends- But what are the reasons are there which makes them poserful
When we study about such depreciation in currency we find out so many relative and meaningful senses having logic:
some of them are really interesting to know:
Productivity and Absolute Currency Value-
If the money supply in a country is fixed but productivity increases, then each unit of currency must store greater value. If the productivity of an economy is fixed but the supply of currency decreases, then each unit of remaining currency must store greater value.
The opposite is also true. When productivity declines faster than the supply of money, the value of each unit of currency drops. The most common monetary phenomenon, inflation, is produced the other way around -- the supply of money grows faster than productivity. There are more units of currency around to absorb productivity, so each one ends representing less exchange value in the market.
Purchasing Power V/S Forex Value:
Forex Market is also Playing the vital role in Currency fluctuation- Because there are mainly two type of forex market
and they both are important-
If forex market assumes the currency will depreciate in the future then the market will start selling and so the currency will start go down against other fiat money.
The wide range of possible factors that influence currency value in international markets includes the relative monetary policy between governments and central banks, differences in economic forecasts between one country and another, the differences in productivity between one set of workers and another, and the relative demand for the goods and services produced between different countries.
USA DOLLAR AND OTHER CURRENCY: {AS ON 15TH JULY 2018
Currency USD
America 1
Euro 0.855728
British Pound 0.755609
Indian Rupee 68.515020
Australian Dollar 1.346753
Canadian Dollar 1.315812
Singapore Dollar 1.365901
Swiss Frank 1.001693
Malaysian Ringgit 4.052252
Japanese Yen 112.379304
Chinese Yuan Renminbi 6.690469
Crypto Currency V/S Fiat Money:
Guys we find the differences in currencies all over the world in every minute. But we never find the price of different countries in respect of Bitcoin and othervcrypto Currency- Prices may be little bit different as per their exchange commission rate only'
That's why so many intellectual people of the world think that Crypto currency will take place of other money in the future.
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Very infomative post with valuable information. Thanks for your post.
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ya, it is very useful fore us all
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