Factors Affecting Currency Value

 Political Conditions in the Country - This includes the stability of the government, the amount of corruption, bribery and the degree of law and order. Also includes a country's relationships with other countries and especially their relationship to US, UK, China and Russia.
Factors Affecting Currency Value

Ø Economic Situation - This includes factors such as jobs, unemployment, work ethic, infrastructure, inflation and direction of the economy.
Ø Perception from Outside - The perceptions and attitudes of other countries toward a country are as important as the reality of the country's actual situation. News, media, movies, newspapers, rumors and spin can create perceptions.
Ø Demographics - A young population may mean better prospects for the future, people who are more open to change and development and a growing size of the workforce.
Ø National Leaders - The openness, trustworthiness and likeability of visible leaders is a factor. This includes political leaders, sports figures, business owners and celebrities. Here are some national figures who affect their countries, either for better or for worse.
Ø Isolationversus Openness - Continuum China is becoming more open, more transparent. This helps. Cuba is very closed and isolated. All have differing levels of openness with the outside world, which affects the value of their currency.
Ø Natural Resources - The kind of and amount of exploitation of a country's natural resources certainly helps create a perception of value, or lack thereof, of a country's currency. Mining of minerals, forests, oil, fish and other resources are considered.
Ø Weather Factors such as drought, tsunamis, earthquake and floods are taken into consideration.
Ø War and Conflicts - With which other country is a country at war, and who is it's allies? Their military strength and technology, their willingness to go to war and for what, are important factors in assessing a country's strength, stability and the value of its currency.
Ø Education - This includes languages spoken, level of computer know-how, Internet connectedness, culture and religion. Scientists, entrepreneurs, authors and inventors are all affected by the type and quality of education in a country.
Shashikant Nishant Sharma