Travelers and businessmen need to exchange currency in order to
travel from one country to
another. Travelers in the territory of another country can go to the currency exchange office and
buy the desired amount of local currency. The amount of local currency they receive will depend
on the current value of both currencies. Currency values will be displayed in the exchange sections.
Although locations vary around the world, currency exchange offices
can mostly be found at
airports, train stations, hotels and local banks. Operators at currency exchange offices
are paid for
their services.
Factors affecting currency values.
3 main factors affect the exchange rates between countries: the country's balance of payments,
economic situation and political stability.
Balance of payments.When a country's balance of
payments is positive, the value of its currency
is usually rising or unchanged. This is due to the increased demand for the country's
products and
currency. If a country has a negative balance of payments, its currency usually depreciates.
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