Just because 2 nations use the term "dollar" does not mean they are talking about the same thing. The value of money is based upon the economic power of the country, and what others are willing to pay for it. These things are in constant flux, so exchange rates go up and down.
Example: If a different country offers 8% on savings, and the USA only 2%, money will flow to the other country from investors. This will make their money more valuable.
Because it refers to currency exchange in large amounts used by business, so $100,000 US would be 109,106 of the other currency.
The 1; 1.09106 is the currency factor ratio ( exchange rate ) used to calculate receipts or payments across borders. There will be the business rate or the tourist rate .
I'm not understanding the value of currencies. I've read that the last four numbers are pip value. But could someone make it clear to me?
