There is a very interesting thing in the international community. South Korea and Japan have very large currency denominations, but they are not as valuable as the US dollar. You should know that these countries are all developed countries, but why are the values of currencies so different? Especially when comparing with , a developing country in , my country, the value of the currency is not high. It is obviously a developed country, so why is the currency "not valuable"?
As transportation becomes more and more developed, people have more and more money in their hands, so many people have the idea of enjoying life. Many people think that they have lived for so long and should go abroad to see the world, so they have the idea of studying abroad or traveling.
Among many countries, the two developed countries, South Korea and Japan receive a lot of Chinese students and tourists. Every year, many people go to these places. There are so many developed countries in the world. Why do Chinese people love these two countries? Especially when many students are studying abroad, they also love these two countries because their currency is "not valuable." Japanese yen Korean won has a large denomination but is not valuable. Why?
Many people need to exchange the currency of their destination country when going abroad. There are a large number of people in my country who travel to South Korea and Japan, so when going abroad, you also need to exchange some currency on them. It is understood that 1,000 Korean won can only be exchanged for 1 US dollar, 100 yen and 1 US dollar, which makes many people wonder why the currency difference in developed countries is so big? So many people also think that the currencies of these two countries are too "top". Is the facts just as people think? How to judge whether the currency is valuable or not actually judged from these two aspects.
1. Foreign exchange rate
Now the international community has become a whole, and there are many trade exchanges between countries. If other countries have a high recognition of the currency of another country, then the currency of this country will be relatively valuable.
Many countries have relatively close trade exchanges, so for these countries, they also need to reserve the currencies of some trading countries during the trade process. The more currencies the country is, the more currencies it reserves, it actually means that the country has a higher currency value. For example, many countries now have relatively high reserves for US currencies, and the international value of US currencies is indeed very high.
2. Currency purchasing power
With the development of the times, the national economy is growing continuously and the price level is also increasing. In the 1990s, the price of a pound of pork was only a few cents, and now the price of a pound of pork is as high as 17 or 8 yuan per pound. From these perspectives, it can indeed reflect that the RMB is constantly depreciating, but after all, the conversion of currencies of various countries was carried out at the same time, so from this perspective, the currencies of these countries are indeed not very valuable.
However, between these two countries, the Japanese yen is a little more valuable than the Korean won. This is mainly because the Japanese yen is highly recognized internationally. At present, the Japanese yen accounts for 5.4% of the international market, and it is still ahead of my country. Therefore, naturally, it cannot be compared because the Japanese yen can be exchanged for less American currencies. Just saying that the Japanese yen is not valuable is not generalized.
3. Exchange rate cannot represent the currency value
For any country, it hopes that the currency of its own country is more valuable. The fewer currencies of other countries can be exchanged, the better. However, if you suddenly increase the value of your country's currency, it is actually not very beneficial to your country. After all, the appreciation of your country's currency is conducive to import of goods, but not to export of goods. So if Japan and South Korea want to make their country's currency more valuable, they can actually change the currency face value and increase the exchange rate.
However, doing so will only put your country's economy in the jail of development.In fact, although the currency value of South Korea and Japan is large, it seems to be worthless. In fact, many countries have a relatively high recognition of these two countries, so don’t be confused by the appearance of the currencies of these countries.
Conclusion
Although my country's economy is constantly developing, for my country, it is necessary to make greater efforts in the process of economic development. After all, the quality of my country's economic development is not too high, so it is necessary to reform my country's current economic development model and promote national economic growth.
The growth of the country's economy can be reflected in the purchasing power of the currency, but this is not an absolute expression. Do you think the Korean won and the Japanese yen will have greater room for appreciation in the future? my country has actually issued currencies with larger denominations in the past. Do you know why it stopped issuing later?
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