Why exchange rates change every day?
The system of exchange rates has always facsinated me. I could have $ 100, converting it to ₤ 49.34, then convert it back the next day to $ 101. Why exchange rates have to change each day? Does this somehow help the economy? Or does it hurt it?
Ill use the word "economy" instead of "country" We see an economy to improve and deproving as time passes. We can not realize about it immediately, but we will know it when authorities indicate it. In 2000 Microsoft launched Windows XP, and now we see Windows Vista in Markets 6 years later. Does it thatit took Microsoft 6 years to improve its business. The answer is no, after XP was launched, every day people went into markets andd bought the software, and thus Microsoft retreived large amounts of revenue in the short term. We dint see it immediately but we realized it 6 years later. This was just an example of a short-scale business. A economy is based on a large scale. If Australia are new companies built so then GDP. gross domestic product will rise, leading to currency Australia to travel on behalf of someone else's economy if the currency of an economy raises then the currency of the second economy down and consequently we are on their way to equilibrium. It is not related hurt or help around an economy. The change Iin exchange day after day helping economists to realize that economy is experiencing the biggest economic growth. Hope that helps mate!
Exchange Rates