What influences exchange rates?
From trading grain, cattle to beads – money has gone a long way since the early days of commodity money.
Fast-forward to today and now every country has its own standardised tender. Add to the mix a global economy, and the foreign exchange (forex) market is born. How much a currency is worth is relative to another currency. But how exactly is this exchange rate determined?
It was only a few decades ago that currencies around the world were back by gold. This meant that whatever piece of money that people used in their day-to-day lives represented a real amount of gold held by that government.
Today, things are a bit different. In our latest infographic and animated video we take a look at some of the main influencing factors on exchange rates.
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