I want to know why in simple plain language why this and who or what determines this.
inflation, and opportunity cost of money, and thus uncertainty.
your currency and value of money is relative to that of other countries.
competitiveness of national economy, level of productivity .... level of price.....
The absolute exchange rate is irrelevant, it is what it is just for historical reasons.
Thanks Mustapha for the insight. Very succinctly explained.
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