Exchange rates provide a window into the relative health of economies around the world. Governments, businesses, and individuals watch currencies closely to gauge their country's economic performance compared to others. Wild swings in Exchange Rates can spell disaster for international traders, travelers, and anyone interested in taking part in global commerce.
The strength of a currency is tied directly to factors like inflation, economic stability, political stability, international trade, and foreign investment. Exchange rates are ever-changing, reflecting the ebb and flow of economic and geopolitical forces.
These five major factors control the news content for countries like Iraq, Vietnam, Zimbabwe, Venezuela, and Haiti on the Edu Matrix YouTube channel. Most investors on the channel participate in the "buy and hold currency" investment model.
True, many investors have held the Iraqi Dinar for over twelve years and counting. Investors in the Iraqi economy understand that IQD is an exotic currency, and the process for increased value can take a number of years before investments pay off.
True that many investors are looking for pie-in-the-sky returns on the IQD. Returns that more than likely will not pan out in our lifetime. However, that is not to say that investors cannot experience six-figure profits. The likely hood of the currency floating to an increased value from ten cents to fifty cents on the US dollar is doable.
Understanding exchange rates is critical for formulating sound economic strategies, managing business risk in cross-border trade, and buying and holding currency investments and the forex market.
