Glossary

The exchange rate is the value of one country's currency in relation to another country's currency.

It represents the price at which you can buy, sell, or trade one currency for another. Exchange rates are influenced by various factors, including interest rates, inflation, economic stability, and political events. They can fluctuate over time due to market forces or government intervention. 💱

For example, if the exchange rate between the US dollar (USD) and the euro (EUR) is 1.20, it means that 1 USD can be exchanged for 1.20 EUR, and vice versa.

Fun fact: The most traded currency pair in the world is the EUR/USD, which accounts for a significant portion of the global foreign exchange market turnover. Additionally, the foreign exchange market is the largest and most liquid financial market globally, with a daily trading volume of over $6 trillion. 💶💵