Major forex pairs
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In a free economy, a country's read more major forex pairs valued according to the laws of supply and demand.
In other words, a currency's value can be pegged to major forex pairs country's paurs, such as the U. A country's currency value may also be set by the country's government. However, many countries float corex currencies freely against those of other countries, which keeps them in constant fluctuation.
The value of any particular currency is determined by market forces based on tradeinvestment, tourism, and geopolitical risk. Every time a tourist visits a country, for example, they must pay for goods and services using the currency of the host country.
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Related Terms. What Is a Cross Rate.