D
DeletedUser394
Guest
I don't really understand how currencies are valued. I don't want to trade them, I'm just looking to understand what's going on.
For example the United States is the world's reserve currency... yet why are some other currencies worth a lot more, when practically no one holds them?
The Kuwaiti Dinar is worth 4x the US dollar... no offence to Kuwaitis but I don't really see there being a massive demand for the currency of a tiny country in the middle of nowhere.
And all those countries that simply peg to the USD, does that mean their currencies aren't actually properly valued? So governments that peg are just artificially inflating the value of their currency?
Another thing;
If a foreigner travels: the country being visited has a weaker currency than the travellers home country, does that give the traveler an advantage monetarily? Meaning if a Brit goes to the US, can they buy more seeing as the pound is much stronger than the dollar?
I'm Canadian and the dollar is weaker than the American. If and when the CAD gets back to parity, then I could totally see an advantage for a Canadian to travel to the US.. but for some reason I'm having a hard time equating that with other countries.
Let's take the Vietnamese Dong. It's the second least valued currency in the world. If I travelled there can I buy more stuff/nicer hotels with my Canadian dollars? Or aren't the prices in Dongs already reflected in the things in Vietnam, therefore making it a wash?
So confused haha. I've been doing some research/reading but at a loss. Any links you know of would be good too.
Thanks. I'll start emptying my rep bank to whoever can shed some light on these issues.
For example the United States is the world's reserve currency... yet why are some other currencies worth a lot more, when practically no one holds them?
The Kuwaiti Dinar is worth 4x the US dollar... no offence to Kuwaitis but I don't really see there being a massive demand for the currency of a tiny country in the middle of nowhere.
And all those countries that simply peg to the USD, does that mean their currencies aren't actually properly valued? So governments that peg are just artificially inflating the value of their currency?
Another thing;
If a foreigner travels: the country being visited has a weaker currency than the travellers home country, does that give the traveler an advantage monetarily? Meaning if a Brit goes to the US, can they buy more seeing as the pound is much stronger than the dollar?
I'm Canadian and the dollar is weaker than the American. If and when the CAD gets back to parity, then I could totally see an advantage for a Canadian to travel to the US.. but for some reason I'm having a hard time equating that with other countries.
Let's take the Vietnamese Dong. It's the second least valued currency in the world. If I travelled there can I buy more stuff/nicer hotels with my Canadian dollars? Or aren't the prices in Dongs already reflected in the things in Vietnam, therefore making it a wash?
So confused haha. I've been doing some research/reading but at a loss. Any links you know of would be good too.
Thanks. I'll start emptying my rep bank to whoever can shed some light on these issues.
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