Please, someone on the face of this earth tell me WHO or HOW currency value is determined?
Please dont bother mentioning any of the following because they do NOT AT ALL answer my question:
1. dont tell me its based on supply and demand
2. dont tell me its based on how much other countries buy a certain countries currency
3. dont tell me based on how much gold, silver, grain, wheat, oil, or bullshit a country has
4. dont tell me based on how much it produces, exports, or imports
Please, PLEASE, spare me all this info… just tell me at the begining of each new day, when the sun rises, how does a certain currency magically change? who ORDERS the change as per the value it changed to? is it a certain country or certain world bank that does all the calculations based on several factors and ends up posting the prices of a certain currency? is it a board of directors from banks all over the world that meet daily and decide? who? what? what is the exact specific source that the Currency Exchange Stores, or banks all over the world get their information from on how much a currency is worth at any given second.
Whoever can answer me, i would be forever thankfully and gratefull.
thanks.
June 8th, 2010 at 2:23 am
In any trade there is a bid (to buy) and ask(to sell). If either doesn’t meet a corresponding ask/bid then no trade takes place till they do match up. When a trade matches it takes place and bingo you have a new "traded at" price.