A List of Factors Which Determine Currency Value (Part 2)

If you search the currency values then those will be different, the comparison of the values of the currencies is different for example the value of one US dollar to Pakistani Rupees is 100.3 at the moment, and that of the<a href="https://www.sterlingcurrencygroup.com/"> Iraqi Dinar </a>is 1162 Dinars to one dollar. The change in this currency is dependent on many factors; these are discussed in this article.

 

4) Political Conditions of a Country:

The next important thing that is the political conditions. If the politics is strong and the country strategies are strong then surely the currency values will increase. The political situation for example in Iraq is now about to grow and that is seem\n in its currency value that is the Iraqi dinar. A country with corrupt politicians will never get the price of its currency high; it will always keep on decreasing.

 

5) How Secretive is a Country:

If a country is secretive enough then also the currency value is stable. This is the reasons that the countries like Iraq, Pakistan etc. cannot get their values high as they are not secretive enough.

 

6) National Debt of a Country:

Yet another very vital and important factor to make the country’s position in the world strong! If the country is under debt from the IMF or other countries then of course the value will never increase. The Currency will never stabilize. The national debt has to be paid off; if not then there is no hope for increasing the value of the currency of that country. So, if you are looking for a strong currency to invest in then you must get to learn these factors.

 

7) Presidents Popularity:
If a president is popular, this can increase the demand for a currency.

 

8) War and Terrorists Attacks:
War means chaos and when there is chaos the governments are never stable, the governments are not stable and have no value for their currency. Take an example of Iraq, the Iraqi Dinar was once 3 to one US dollar, but after the war broke and things went bad, the value of Iraqi Dinar fell to thousands as compared to one USD.

 

9) Government Growth:

Is government growing? Is it expanding? Developments in the country can be great for the currency value.

 

10) Tax Cuts for the Consumer:
If there are more and more taxes imposed on the citizens even then the value will not stabilize or get better.