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| Subject:
Money
Category: Miscellaneous Asked by: asiyah-ga List Price: $2.00 |
Posted:
26 Feb 2006 03:22 PST
Expires: 28 Mar 2006 03:22 PST Question ID: 701093 |
Why is pound a stronger currency than US dollar? |
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| There is no answer at this time. |
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| Subject:
Re: Money
From: myoarin-ga on 26 Feb 2006 04:09 PST |
Just because a currency is worth more than one US dollar does not mean that it is stronger than the dollar. It is simply a matter of how the nation's central bank defines its currency. A few countries with rampant inflation (Turkey, Brazil, France) have reset this when all prices were in thousands by striking off the three zeros, maybe also renaming the currency. Until 1949, the pound was almost always worth more than 4 US dollars. |
| Subject:
Re: Money
From: asiyah-ga on 28 Feb 2006 22:41 PST |
If pound is not stronger then how is the currency of a country valued in the international market |
| Subject:
Re: Money
From: myoarin-ga on 01 Mar 2006 04:43 PST |
The relative value of the pound to the dollar (or to any other currency) - the exchange rate - results from daily (now around the clock) trading by foreign currency dealers (usually on behalf of financial institutions) based on the relative demand for the one or other currency. This demand can be influenced by economic and political news. For example, if interest rates rise in one country, the exchange rate (price) for its currency may increase as people choose to buy it and hold funds at the higher interest rate. Or, hopefully theoretical, if the US were to bomb Iran, the value of the dollar might decline. Does that help? |
| Subject:
Re: Money
From: asiyah-ga on 04 Mar 2006 01:53 PST |
I think $2.00 is not enough to recieve a befitting answer |
| Subject:
Re: Money
From: myoarin-ga on 05 Mar 2006 05:48 PST |
Asiyah, Comments are never an official answer that would cost you the price of your question (just the $0.50 charge by Google). Only G-A Researchers with a blue user name can post "answers", so my attempts to answer your question have not cost you two dollars. Regards, Myoarin |
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