Turn on thread page Beta

Why does currency fluctuate? watch

Announcements
    • Thread Starter
    Offline

    21
    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.
    Offline

    18
    ReputationRep:
    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
    Offline

    21
    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.
 
 
 
Poll
Do you think parents should charge rent?
Useful resources

Groups associated with this forum:

View associated groups

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.