Exchange rates

[sammyrobo]

Who or what decides upon what the exchange rate is?

[Loosehead]

No one "decides". The currencies of the world are the purest form of market. The activities of the connected governments effect the desirability of owning one currency over another. There are many things that can effect the relative value of a currency to another not to mention the overall effect of the worlds major currencies. Too complex a subject for a thorough explanation.

[Hammer]

Very basically, if lots of people want to buy a currency, its value goes up. If no-one wants to buy it, its value goes down.

There are of course a million different things that could affect this ...

[Tim Baxter]

It depends on what your particular paranoia is, there are hundreds of manipulation theories for this.