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Old 06-06-2019, 08:51 PM
 
137 posts, read 102,443 times
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Topic: Currency vs the US Dollar: Pound, Euros

Why are the pound, euros gain more in return when you exchange it for USD Dollars?

What is the reason behind this?

Why can't it be 1:1 ratio : USD to EUR or USD to GB

I know for instance that 1 USD can be traded for 19 MXN Pesos
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Old 06-07-2019, 03:39 PM
 
Location: OH>IL>CO>CT
5,226 posts, read 8,384,895 times
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If you want a real technical explanation, try here:

https://en.wikipedia.org/wiki/Exchan...er_of_currency

Otherwise, it's just the arbitrary way each country established it's monetary system (ie what does a peso, or a dollar, etc buy you). And how inflation (and deflation) changes the exchange rates.
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Old 06-08-2019, 09:22 AM
 
8,878 posts, read 3,927,925 times
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Quote:
Originally Posted by mrxalleycat View Post
Topic: Currency vs the US Dollar: Pound, Euros

Why are the pound, euros gain more in return when you exchange it for USD Dollars?

What is the reason behind this?

Why can't it be 1:1 ratio : USD to EUR or USD to GB

I know for instance that 1 USD can be traded for 19 MXN Pesos
Each country or monetary system as in the EU, issues and controls the nature of its money and money system. Each country has its own politics and policies that affect the value of their currency. This all fluctuates for a many reasons over time, and relative values of currencies then fluctuate.

For instance :

50 Factors that Affect the Value of the US Dollar – Currency Trading.net
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Old 06-10-2019, 04:02 PM
 
15,779 posts, read 9,524,386 times
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two posts have been deleted. If you donít have something constructive and on topic to say, then donít post in this thread.
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Old 06-10-2019, 04:17 PM
 
Location: Aurora Denveralis
8,579 posts, read 3,001,676 times
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I didn't comment before, but I am always fascinated/mildly appalled when people do not understand why monetary units are not identical except for local names. It's maybe a little understandable when talking about the US, Canada and Australia, but it's pretty basic economic concept and that econ is so skimpily taught that this confusion is... common is disheartening.
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Old 06-13-2019, 09:53 AM
 
Location: Copenhagen, Denmark
10,511 posts, read 8,753,773 times
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Quote:
Originally Posted by Hoonose View Post
Each country or monetary system as in the EU, issues and controls the nature of its money and money system. Each country has its own politics and policies that affect the value of their currency. This all fluctuates for a many reasons over time, and relative values of currencies then fluctuate.

For instance :

50 Factors that Affect the Value of the US Dollar Ė Currency Trading.net
Except that countries in the Euro-zone have no central bank and, hence, no monetary policy apart from that dictated by the EU central bank. Sweden and the UK have not tied their currency to the Euro, but the Danish central bank has imposed a floating exchange rate between the Danish Krone and the EU Euro.
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Old 06-13-2019, 12:11 PM
 
8,878 posts, read 3,927,925 times
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Quote:
Originally Posted by Frihed89 View Post
Except that countries in the Euro-zone have no central bank and, hence, no monetary policy apart from that dictated by the EU central bank. Sweden and the UK have not tied their currency to the Euro, but the Danish central bank has imposed a floating exchange rate between the Danish Krone and the EU Euro.
That's what I meant by the EU monetary system.
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