Forex Digest

How do currencies get their value? Are there set formulas that make the value go up & down? What factors determine the exchange rate of a currency?

In a free market, it is simple supply and demand.

If you flood the foreign markets with your currency, you create an excess supply of it, and the value goes down. That makes other currencies stronger in comparison, which wrecks the economies of exporter nations.

Or if you soak up much of your currency that is in circulation in foreign markets, you create a scarcity and your currency becomes more valuable. That wrecks your own export business.

One way of moving your currency in or out of foreign markets is by your balance of trade. If you have a trade surplus, like we had before 1980, you are selling more than you buy, and your currency gets stronger.

If you hae a trade deficit like we have had since 1980, you are buying more than you sell, and the foriegn markets are getting flooded with your currency. Your currency then gets weaker.

That tends to have a self-correcting effect, because when your currency gets weaker it costs more to buy imports and your trade balance tends to stabilize.

That is not happening today relative to Chinese currency, because the Chinese are manipulating their currency to keep it weak so they can keep exporting to us. That is bleeding money out of our economy while they have crowbarred the self-correcting mechanism, so our economy will continue to self-destruct until we find a president who has the sense to put a stop to this insanity.

2009-09-01 10:56:24 by Thinker

I'm going out of country to Japan and I am going to be missing school so my math teacher wants me to calculate the currency exchange rate for both weeks I'll be there.

yahoo finance

http://finance.yahoo.com/currency

2007-03-25 16:43:38 by Me

Where in thailand can i get the highest currency exchange rate i will be wanting to change US dollars into Thai Baht and i know that some places have higher exchange rates then other's.CENTRAL BANGKOK ONLY*
airport?

Best place is Super Rich for Bangkok. Make sure you have large denominations like $50's and 100;s for best rate. Here is the website http://www.superrich1965.com/Eng/locatio n.aspx

2008-12-19 14:59:39 by ******

I have a Citibank account but which local korean banks have the best currency exchange rate? Does citibank in korea have a good exchange rate?

The actual Exchange Rate is determined federally if I understand correctly. The difference in price comes in the way of different fees banks may charge to exchange the currency. The bank where I work charges a flat $16.50 fee for any type of currency exchange.

2007-10-08 20:18:09 by ItzHobbes

I have been asked to find out The Post Office and Thomson (travel agent)'s current foreign currency exchange rate.

I am on work placement working with First Choice Holidays and they have asked me to research this but its very tedious as they said I would have to ring them for some reason but do you know what PO and Thomson's exchange rate is?
For Euro and US Dollar.

Helen C, I found a website of US foreign currency exchanges. http://www.whatisforextrading.com Try visiting one of them and see if they have a service representative that can assist you.

2009-01-09 13:08:33 by ♥ =^.^= ♥ нєℓєη ♥ =^.^= ♥