If we consider the reasons for the fluctuation in the course according to a simplified scheme, it will look as follows. Each country produces certain products and sets this product the price. Suppose that in two different countries the same product is produced, but their cost is different. The consequence of this is that consumers will prefer to purchase this product from those manufacturers who sell it at a cheaper price. Since in this case a cheaper product was produced in a foreign state, it will be purchased accordingly in this state, and this is necessary for the currency. Thus, it turns out that there was a demand for the currency of a certain foreign state. This leads to the fact that the money of the exporter country grows up in their face value. As already indicated, the example considered above is very simplified, but it fully reveals the reasons why the exchange rates are constantly changing.
In addition to the specified factor, the economic and political situation in a country largely affects the change in the course. So, if in a certain state the political situation is unstable, the production and other enterprises of this country will also function unstable. Therefore, they will not be able to stably saturate the market with products. That is, such a state simply will have nothing to trade, up to the point that natural resources will not be mined if they are present in this country. It is clear that under such conditions the currency course will fall rapidly. Therefore, during the preparation of economic forecasts, political and economic trends, the closest attention should be paid.
There are still many factors that can affect currency courses. It is almost impossible to take them into account, especially since not all information is submitted to the media that can be useful for economic analysis. Nevertheless, any global changes cannot be hidden and the combination of these global changes can say a lot. In addition, do not forget that there are so -called long -term factors that also affect the exchange rates, and they must also be taken into account.
