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this post was submitted on 16 Jan 2024
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It's an interesting idea, but the caveat here will be to do this for all currencies in the world, otherwise the concept of foreign exchange rates would get fucked up.
One of the primary parameters for determining exchange rate between two currencies is to first determine how much the same service/product/lifestyle cost in those two currencies.
Unless you "adjust" both the currencies (and in turn, all the currencies in the world), one currency (or country) would spiral into an economic abyss.
wouldn't the same logic apply. So for example, a euro would be $0.36? That should be easy for computers to handle
Correct, but only if you can make the European Union to agree to slash the value of 1 Euro from $1.09 as of now, to $0.36 ( what you proposed) - and then get every other currency in the world to follow suit.
Good luck with that.
The European Union wouldn't have anything to do with it. The market would, because the dollar would triple in value and therefore the euro would be one-third its value compared to the dollar.