| | | | Mai's questions are worthwhile discussion. Exchange rates, theorically, are determined by market (demand/supply), but some factors need us to think. I have a story. I changed a certain amount of USD from CAD this April at the price 1.455 and deposit in a famous bank in Canada (I do not want to give its name, but it must be within top 3 in Canada). One of agent in that bank called me and want to talk to me face to face a couple of days later. I felt strange why don't talk to me on the phone. In the appointment, the agent tried to make clear my intention and suggested me to change back as soon as possible. I thought it would loss money. It is crazy for a agent to ask her client to loss money. So, I told them I belive USD/CAD would be rise to 1.49 within a month and I will change back then. She said OK. 1. 49 was really seen in the following week though very short time, but I am busy with something else and forgot to change it back. Things happened. The rates moved to 1.33 by the following month. This story is just to show that rates sometimes are determined by speculators whom are supported by government. Or governments' forenge currency' policy are deeply influenced by big speculators. They want to make money. | | | | |
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