One U.S Dollar is equal to 3.75 Saudi Arabian Riyals, who fixed this exchange rate and how?
One Saudi Riyal is equal to 12/- Indian Rupees and there is fluctuations in currency everyday then what is the reason. How this difference has come basically.
If it is a fixed rate, like the chinese yuan, it will stay at a fixed rate. If currency is based on a floating exchange the rate is determined by speculation of the economy. Then you also have to take into consideration the buying power of a currency. The US dollar has been a standard for currency since the Brenton Woods agreement after WWII. If economic unions continue to pop up, as in Europe, we will have be using the same currency eventually.
