Vahetusügist

Vahetusügist, also known as exchange rate, is the rate at which one currency will be exchanged for another. It is determined by the market forces of supply and demand for the currencies involved. Exchange rates fluctuate based on various factors, including economic indicators, political stability, and global events. They are crucial for international trade, tourism, and investment, as they affect the cost of goods and services, remittances, and the profitability of foreign investments.

Exchange rates can be fixed or floating. A fixed exchange rate is set by a central bank and does not fluctuate with market conditions. A floating exchange rate, on the other hand, is determined by the market and can change daily. The choice between fixed and floating rates depends on the economic goals of a country, such as maintaining price stability or promoting international trade.

The exchange rate between two currencies is typically quoted as a pair, such as EUR/USD, representing the number of US dollars needed to buy one euro. For example, if the EUR/USD rate is 1.20, it means that one euro can be exchanged for 1.20 US dollars.

Exchange rates are influenced by a variety of factors, including interest rates, inflation, economic growth, and geopolitical events. Central banks often intervene in the foreign exchange market to influence exchange rates, aiming to stabilize their currency or achieve specific economic objectives.