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Foreign Currency Exchange ChicagoLast update: Tuesday 22nd of May 2012
This is not a theoretical - and thus unnecessary - debate. ALL monetary unions in the past failed because they allowed their currency or currencies to to be exchanged (against outside currencies) at varying rates, depending on where it was converted (in which part of the monetary union). Currencies are always traded in pairs. One might sell US dollars and buy Euro's or vice versa. Remember, to truly make a profit from it. A country which is known to have corrupt politicians, can result in the value of the countries currency. The bid price for a counter currency is always lower than the ask price, which represents how much must be paid by the taxpayer. If taxes increase, this results in less consumer spending. This has a negative affect on the agricultural industry, energy consumption, and local economies. These also can determine the demand on the currency, and ultimately it's value. To what degree do political affairs have on the economy of that country? A country which is known to have corrupt politicians, can result in an increase demand for that countries currency. Thomas
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