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Why does currency fluctuate? watch

    • Thread Starter

    How can a Pound be worth 1.22 Euro one day and only 1.13 Euro on another day? Dont take this specific example as anything accurate because I have no idea what the current rates are. Anyway why do they fluctuate?
    Why cant there be a set rate for all currencies which is to be strictly adhered to? It would simplify things greatly, as well as eliminate certain fears over markets etc.

    Exchange rates float freely against one another, which means they are in constant fluctuation. Currency valuations are determined by the flows of currency in and out of a country. A high demand for a particular currency usually means that the value of that currency will increase.
    • Thread Starter

    Yeah I know but it still dont make sense. Why cant there be an international standard like there is for weights and measures? Can you imagine that 1KG is about 2.2lbs one day, and 1KG is 3.7lbs another day. Kind of defeats the purpose of having units of currency if people, businesses etc are just gonna change their values.
Do you think parents should charge rent?
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