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George Marian
George Marian
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how How are exchange rates decided for each country?

For exampleCurrently, EUR/USD is 1.32395.I I understand that this means, I will require 1.32395 USD to buy 1 EUR. But, how is this rate arrived atdetermined? I also, understand that there are fundamental reasons which affect this rate and the pair (EUR/USD in this case) will go up or down. But, how did we arrive at the rate initially? And

Also, why do I keep reading that US has the power the power to print as many $dollars it wants.? Isn't this also true with other countries too withand their respective currencies?

how are exchange rates decided for each country?

For example EUR/USD is 1.32395.I understand that this means, I will require 1.32395 USD to buy 1 EUR. But, how is this rate arrived at? I also, understand that there are fundamental reasons which affect this rate and the pair (EUR/USD in this case) will go up or down. But, how did we arrive at the rate initially? And why do I keep reading that US has the power the power to print as many $ it wants. Isn't this true with other countries too with their respective currencies?

How are exchange rates decided for each country?

Currently, EUR/USD is 1.32395. I understand that this means I will require 1.32395 USD to buy 1 EUR. But, how is this rate determined? I also, understand that there are fundamental reasons which affect this rate and the pair (EUR/USD in this case) will go up or down. But, how did we arrive at the rate initially?

Also, why do I keep reading that US has the power the power to print as many dollars it wants? Isn't this also true with other countries and their respective currencies?

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tugga
tugga
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how are exchange rates decided for each country?

For example EUR/USD is 1.32395.I understand that this means, I will require 1.32395 USD to buy 1 EUR. But, how is this rate arrived at? I also, understand that there are fundamental reasons which affect this rate and the pair (EUR/USD in this case) will go up or down. But, how did we arrive at the rate initially? And why do I keep reading that US has the power the power to print as many $ it wants. Isn't this true with other countries too with their respective currencies?