The value of currency in country's economy

[Sarah_Jannat42]

Currency determination is a very important or urgent matter for the economy of any country. In the country's economy, the value of a currency is determined against the value of goods. That is, if the price of goods increases, the value of money decreases, similarly, if the price of goods decreases, the value of money increases. Again, the value of a country's currency gives more priority to the quantity theory of money. For example, the value of a currency is determined by all the money in circulation in a country, but in this case, there must be a balance between the overall demand and the total supply of the country and there should be a full employment system in the country. Again the currency value of the country is determined by the gold reserves of the country which is resolved by the central bank. Currently, the currency value is determined based on the gross domestic product of a country.

[bluebit25]

I live in a country with a growing economy but at a fairly fast pace. I also see the economic influence from big countries like USA, China,... But it must be said that the policies we are applying are approachable and quite effective for national economic development. The way I perceive the USD is the strongest currency in the world is due to many factors, including the strength of the US economy, high interest rates, high demand for USD, politics.

The country I live in has been depreciating against the USD for many years, but has been on an upward trend recently. My feeling about the national economy is truly absolute confidence, because if we look back about 20 years ago, we have achieved great achievements, escaped poverty and are improving everything more positive.

[oktana]

I also think that their unity adds to it. If for instance the US states ever had internal issues and for any reason they choose to divide the country, they’ll lose their ground. I know any country would lose their ground in such case but it seems US watches other countries have conflicts but never does. I am not sure if I’m explaining this well but at least it gives a picture. And yes, like you said, their technological innovation, large market, etc adds to it too.

[NewRanger]

If tou think about it, U.S. economy rocks because it's got a bit of everything like tech, finance, manufacturing, you name it. They're big on innovation which keeps things buzzing. Their stable political scene and solid legal system make it a haven for businesses. In my country, its a lot worse and I can start with how the taxes are spentfor the reason why its not doing so well

In terms of innovation, I agree that America has a place in providing opportunities for technological innovation and also a large market as well as knowing positive and negative sentiment by following updates on global market conditions. Yes, it is an important factor in maintaining a country's superiority where the combination of all these factors helps build a strong foundation for growth and sustainability of course.

[Cryptomultiplier]

America as a country has the largest gold reserve in the world if I am correct and that is a sure backing to the dollar, hence why it is strong and dominant in the world.
If ac country wants it's currency to have much value, it would aim to ensure that it has enough in its reserve so that when the demand for the currency rises, it would be able to supply accordingly.

The U.s has done a lot of marketing right from time and that's why it's easy to have an influence in many countries despite the kind of currency they use.

[Mate2237]

Even the floating economy is control by the US dollar and also the fixed economy of the state. And why the floating economy is because the marketers increase their goods price whenever the dollar exchange rate has increased in the international market, those imported goods would also increase their goods prices in the market and that would extend hand to the local market. I have forgotten why the US currency is used as the international currency in the international market.

The international market is dollarcentric and any other currency is subjected to it. And because of that the value of other currencies are devalued.

[Gormicsta]

The value of the currency plays an important role in the strength and development of a country's economy.

Their prices can be determined in two ways: the floating price and the fixed price. The floating price is determined by supply and demand in the global currency markets. If the demand for the currency is high, its value increases, and if it is low, this will lead to a decrease in the value of the currency. The fixed price is determined by The government through its central bank, where the price is determined against another major global currency such as the US dollar, the euro, or the yen, and to maintain the exchange rate, governments buy and sell their currency against the currency tied to it.

The dollar is the strongest currency in the world.. Why?

Economists point out that the US dollar has been the cornerstone of the global economy since the middle of the twentieth century, and it can be said that despite the repercussions of the strong dollar globally and the more stringent global financial conditions, the rise or stability of the dollar is due to reasons including what is related to the strength of the US economy and raising interest rates. By the Federal Reserve Board

There are a number of economic fundamentals that are considered a major factor in the rise in the value of the dollar, including the rise in US interest rates, the diversity and multiplicity of industries in the US economy compared to the dependence of other countries on a small number of industries or exports of goods, which makes them more vulnerable to economic cycles, and the confidence of investors and their aspiration to buy... Currencies with high interest rates create a reserve rate of return on their currency exchange, as higher interest rates make the currency more attractive and therefore in a growing economic environment this situation will make traders have a positive outlook on the rise of the dollar.

-What are the other factors that made America's economy the strongest in the world?
 -What is your assessment of your country's currency in relation to the dollar?

All of these variables have contributed to the US dollar's position as the world's primary stable currency. This implies that many foreign countries maintain US dollars as reserves, which contributes to the dollar's strength. The US dollar is also widely utilized in worldwide trade and finance, serving as the currency for the majority of global transactions. The overwhelming influence of the US dollar may have both beneficial and bad consequences for the global economy. On the one hand, it ensures steadiness and a single currency for trade across borders. On the other hand, it may cause inequalities in investment and commerce, as well as currency crises in other nations, and it's captivating to contemplate how the U.S. dollar supremacy could be influenced by the rise of other currencies such as euro etc.