How Currencies Actually Work (Full Beginner's Guide)

How do currency exchange rates actually work? Why does the value of the dollar, euro, yen, or other currencies change every second? And who actually decides what one currency is worth compared to another? In this complete beginner’s guide, we explain how currencies and foreign exchange rates work from the ground up. You’ll learn how the forex market determines currency prices, why currencies rise and fall, and what causes exchange rates to change. 0:01 Intro 0:30 What is an exchange rate? 0:59 The Foreign Exchange Market (Forex) 1:45 Bretton Woods and the Nixon Shock 2:27 Floating vs Pegged Currencies 2:59 Supply and demand 3:19 Interest rates 3:50 Carry Trade Strategy 4:10 Inflation 4:32 Trade Balances 4:54 Speculation and Capital Flows 5:20 Safe-Haven Currencies 5:58 Currency Crises 6:36 Is a Strong Currency the Goal? 6:59 Currency Wars 7:07 Mid-Market Rate vs Retail Rate 8:02 Currency Risk for Investors 8:43 Stablecoins and Currency Pegs 9:03 The Swiss Franc Shock of 2015 10:00 Outro 📈 Invest with Webull! Deposit $500 & Receive $20 worth of fractional shares + 1 month of Webull Premium🚀 https://www.webull.com/k/MartikFinance 💰 Invest with Moomoo & Receive Up To 30 Free Stocks! 🤑 https://start.moomoo.com/0eflId 🔍 30$ discount on Seeking Alpha Premium (Best Stock Research 📈) https://link.seekingalpha.com/4HBD5TR/4G6SHH/ 📢 50$ discount on Alpha Picks https://link.seekingalpha.com/4HBD5TR/4HKP84/ ⭐$156 discount: Premium + Alpha Picks https://link.seekingalpha.com/4HBD5TR/4JZKZP/ Moomoo is a trusted, legally registered platform and a subsidiary of Futu Holdings, a company listed on the NASDAQ. Webull Financial LLC, Member SIPC, FINRA. Investing involves risk. (These are affiliates links, which means I get a commission for each purchase. See Terms & Conditions) 📊 Next Watch: 👉 https://youtu.be/xmdBlkrkTN4 👉 https://youtu.be/00qrvsLpSy4 💡 Don’t forget to like, subscribe, and hit the 🔔 bell icon for more easy-to-understand investing videos! *Disclaimer:* This video contains affiliate links, which means I may earn a small commission if you fund your account through them. Please invest responsibly and always conduct your own research before making any financial decisions. The content on this channel is for entertainment and informational purposes only. It is not intended to provide investment or financial advice, or recommendations regarding specific securities or investments. Always consult a qualified financial professional before making any investment decisions. Every investment involves risks.