Source: Cobden Centre
by Dr. Frank Shostak
“It would appear that various factors such as the government debt, the interest rate differential, the state of the economy and the balance of trade are important factors in the currency exchange rate determination. We can also add to these various psychological factors that would appear to be important in the currency exchange rate determination. Thus, a change in individuals’ perceptions regarding the state of the economy is likely to influence the currency rate of exchange. Rather than focusing on many factors, it would make more sense to identify the key or the essential factor that determines the currency rate of exchange. We suggest that what matters here is to identify the essence that dictates the currency rate of exchange determination.” (01/28/25)