问题：一个国家的货币为何会升值，为何会贬值，如何控制
- 主题发起人 公子老刘
- 开始时间
everyone in the market collectly decides the exchange rate. No one can control it, even the central banks.
Most of the time, fundmental reasons cannot explain what is happening on the market. Currency rises when there are more buyers than sellers, and falls when there are more sellers. Opinions on fundmental changes from different groups, can be very different. It is the market.
So it is often impossible to predict the market direction. The only thing you can do is to accept the rate as a fact.
That is my understanding.
Most of the time, fundmental reasons cannot explain what is happening on the market. Currency rises when there are more buyers than sellers, and falls when there are more sellers. Opinions on fundmental changes from different groups, can be very different. It is the market.
So it is often impossible to predict the market direction. The only thing you can do is to accept the rate as a fact.
That is my understanding.
It is simply supply and demand. When a central bank raises key rates, it makes sense to foreign investors to invest in that currency, therefore demand of it increases, of course the currency appreciates, and vise versa. However during financial crisis, US government bails out the losers, so the fed prints out more USD therefore supply of USD suddenly increased, and USD depreciates. Fundamentally, in Macroeconomics, it is always the money supply on the aggregate level that will determine appreciate or depreciation. Just my two cents though.
