Quote:
Originally Posted by Montrealcorp
ho boy...
if u dont understand how prices going up means the value of your currency is going down i dont know what to tell you.
its simple division u learn in elementary school.
Want to bet?
Hint: a currency cannot go down lmao.
First of all, a currency can only change value relative to another currency.
You cannot say a dollar is worth less. Worth less what? Worth less coffees? Worth less Euro? Worth less Yen?
When demand for a currency goes down relative to other currencies, then the value of that currency, expressed relative to other currencies, goes down.
When demand for a currency goes up relative to other currencies, then the value of that currency, expressed relative to other currencies, goes up.
To international customers this can make a large difference . To domestic customers it only matters if the seller changes their prices.
If you haven’t been well educated with regard to forex then I wouldn’t expect you to understand this before I explained it. It is a common misconception that your currency can change value on its own. It can’t. It’s a relative term. You need something else in the equation.
Last edited by PointlessWords; 07-21-2024 at 09:23 AM.