#forex #money #market | How Exchange Rates Work

#forex #money #market | How Exchange Rates Work



How Exchange Rates Work

How Exchange Rates Work



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About the video:

You may have traveled a lot and wondered why you get more of one currency when you exchange it for another. If so, you have witnessed exchange rates in action, but do you know how they work? Watch the video to find out what exchange rates are, how to convert between them and the different systems which determine a currencies exchange rate. Historically the gold standard system had been used, which fixed currency to a select value of gold, held in a vault. The three main systems are the floating, managed and fixed exchange rate systems. The floating system has minimal government intervention, using supply and demand to determine the exchange rate. The managed exchange rate is allowed to be within a permitted band and a fixed exchange rate is usually pegged to a currency with the interest of being competitive in the international market. The video explains this in more detail and with helpful picture to guide you through the subject.



17 Comments
  • Nadia Moise
    Posted at 16:13h, 09 October Reply

    Very helpful but I fell asleep

  • Ahmet Eren Çakır
    Posted at 15:28h, 09 October Reply

    Lets remove the us dollar from world ..its bloody money of evil usa …humanity should never use dollar for trading purposes to avoid evil trump and his country ….

  • Hi-tech club
    Posted at 14:51h, 09 October Reply

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  • Pattarapol Horsuwan
    Posted at 14:01h, 09 October Reply

    This deserve more views

  • Maderra -4
    Posted at 13:05h, 09 October Reply

    This is not simple at all

  • Ritesh khatiwada
    Posted at 12:11h, 09 October Reply

    How china is making it's exchange rate low?

  • Anna Kashpruk
    Posted at 11:26h, 09 October Reply

    Thank you for your video!! Oober Wallet presents the fastest way to exchange currency & cryptocurrency. Find more on

    It can be interesting for you. Ask any questions in comments.

  • ariel casper
    Posted at 10:33h, 09 October Reply

    Simply hard to understand for me

  • Rabia İstanbulluoğlu
    Posted at 10:21h, 09 October Reply

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  • Armenias Thunk
    Posted at 09:23h, 09 October Reply

    Nope, you can't do in 5 minutes what at best takes 10, probably 20 minutes, and that's supposing the viewer has at least a foundational understanding of macroeconomics.
    Of course, you could have gone with the whole Americans buying French Wine thing. That is, say there is an increased demand for French Wine from people holding US dollars, but not from people holding the Franc. This demand would cause some price pressure on the overall wine market, but in this instance more of the price-pressure is from the US dollar. Ordinarily, one might just raise the price overall, but because the main sector of the French Wine Market is from France (I assume), raising the price on everyone would cause the Franc holders(yeah, I know Euros, it's an example) to pick up more of the demand-price increase than is a true reflection of the market. So if there is a necessity to hold the current price in Francs, then it would be better to devalue the US dollar at the Foreign Exchange Bank. Of course, the actual value of the exchange rate is determined not only by the multitude of trade relationships taking place, but it is also influenced by speculators based on their own belief in future values derived from various individual pricing models.
    For the record, I've left out how the value of a currency is initially determined, and probably a lot of other things, but my attempt was only to show the very narrow window of the basic idea why exchange rates vary without getting too complicated.
    I hope that helped. Peace.

  • Dana Manolescu
    Posted at 09:07h, 09 October Reply

    Which are the determining factors of the Greek's crisis?

  • Dana Manolescu
    Posted at 08:50h, 09 October Reply

    Why the value of US dollar is below Euro's value? Is it more profitable from the exports point of view? It means the goods are produced to a lower price (dollar) and sold to a higher price (Euro). A lower value of a certain currency could mean a higher exports value? Than, why Euro and GBP are kept to a higher than dollar?

  • RikWillsBitch
    Posted at 08:25h, 09 October Reply

    That just left me more confused. This should be called "QuicklyExplain" not "SimplyExplain"

  • Janjan Abc
    Posted at 08:20h, 09 October Reply

    to much talk but the real answer is not really explained at all

  • Michael Miazga
    Posted at 08:18h, 09 October Reply

    if you guys cant get simple things. and understand i suggest you to throw away your mobile phone cuz you are getting Facebook Dumb
    Brain Washed.. and Life washed so you washed your lifes away.
    you brains is full of shit . Please go to nature and empty your mind.

  • top5djs
    Posted at 07:53h, 09 October Reply

    How do you actually win in this industry I would like to start off buying some Brazilian reais $500 usd worth, now how would I be able to see a profit?

  • Preesa Wong O.O Travel Vlogs & U-life
    Posted at 07:19h, 09 October Reply

    I don't think you explain it simple enough. I don't know anything about business and I can't understand it after watching your video. There's some channels that make me understand what GDP per capita is even though I'm not from a business background

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