>1 british pound = 1,18
>1 bahraini dinar = 2,65
>1 kwait dinar = 3,25
How does this currency thing work? Are currencies the biggest "product" countries can trade? Ive heard the brit pound is stronger because The City of London requires traders from all around the world to purchase pounds to trade there, creating a demand for pounds, something like that... What about Kwaiti dinar? How can countries keep the currency strong while others struggle to keep it afloat like the Argentine peso or Russian ruble?
How some currencies are stronger than US dollar?
The Belarusian ruble is $0.4
guess it depends on how many of them they make and also the amount of trade they do that requires those things
Because the amerishit dollar is a meaningless green toilet paper.
I'm not even sure that the "strength" of a currency is a good indicator.
Yen is weak af, it's 2 Yens for 1 Croatian Kuna, by that measure you'd say Croatia has stronger economy than Japan lol.
It's more the matter of stability I'd say.
Looking at the currency itself doesn't tell you much. To know how wealthy people are in a country, you need to know about their income and the cost of products and services available to them.
Google it, it's basic macro shit
>How does this currency thing work?
Strong for currency:
- Have a relatively high interest rate
- Be seen as a safe place to invest capital; a safe and profitable place to do business
- Favourable corporate tax laws; favourable corporate law in general
- Bonds issued in the currency are safe
- Currency held as reserve by other countries
- Large amounts of trade carried out in currency
- Large tax bill paid in currency
- Trade surplus; exports more value than it imports
- High immigration
- Government fiscal surplus
- Quantitative Tightening (or no Quantitative Easing)
- Reduction in size of money supply
- Relatively low inflation or negative inflation (deflation)
Weak for currency
- opposites of the above
Another thing, some factors can have varied weighting depending of investor sentiment. For example, in times of global economic crisis, being a safe place to store capital becomes extremely important.
It depends whether the currency is formed on the market or pegged
Kuna was pegged to the Euro, so it was artificially stronger than Yen
Also, a lot of export-oriented countries devalue their currency to keep exports strong
It's all a fugazi, race to the bottom if you will.