Why Is Currency Different Depending On The Country?

[NorthAmericanguy]

I don't understand. Why is it that in one country a currency will be worth x amount of dollars, but in another country the currency will be worth a completely different amount?

I don't get it, the only thing that makes sense to me is supply and demand, but what other factors does the IMF/ World Bank use to value currency?

Help! (in laymens terms please)

[globetrotter]

The Market values the currency, not the IMF.

It's based upon the economic fundamentals of a nation wrt exports, imports, business environment and other factors.

http://www.tickerforum.org
http://www.zerohedge.com

[The_Adventurer]

All I know is you can lose a lot of money just changing currencies a couple of time. In China, you're far better off going straight to PHP rather than going to USD and then PHP. A good amount of money vanishes into thin air that way.

[martinhentges]

Currency are not different but we called from different different name. But the countries exchanging rates are different from that reasons the currency amount are changes from country to country. In US their is dollar and in UK their is pound and theirs exchanging rates are different so because of this difference come in their rates.

[MrPeabody]

All I know is you can lose a lot of money just changing currencies a couple of time. In China, you're far better off going straight to PHP rather than going to USD and then PHP. A good amount of money vanishes into thin air that way.

That's because there isn't one price, but two prices which make up the spread. You, as the customer, buy the currency at the expensive price and sell it back at the cheaper price. So, if you buy the currency and immediately sell it back, you have lost money, even ignoring fees. If you go from USD to PHP to CNY, then you have paid for two spreads.