Get exceptional prices on travel cash each and every time you go abroad with WeSwap. To sustain the exchange rate, the government had to sell sterling and acquire foreign currency, for that reason growing their holdings of foreign currency. Let us now assume that the exchange rate depreciates from £1 = €2 to £1 = €1. Europeans getting good X from the UK will now have to give up only €5 to acquire the good rather than the €10 they had to previously.
I’ve been to Japan just before, but because I wasn’t going to Tokyo this time about my buddy advised that I exchange some Yen ahead of going. Massive holdings of foreign exchange reserves required – Fixed exchange rates require a government to hold massive scale reserves of foreign currency to sustain the fixed rate – such reserves have an opportunity expense. Rather than purchasing currency from a … READ MORE