Why currencies of different nations differ in value?

Question

Why currencies of different nations differ in value?

Answer 1

Because most currencies are issued by the governments of the respective countries, backed by the taxing power of the government. Given that they are not typically tied to a commodity, such as gold, they will fluctuate with respect to other currencies.

Answer 2

First, if the value DIDNT differ, wouldnt it be 1 currency?

The reason is importance. The American dollar is falling because of its economy, Canadian dolar rising because of its economy. It also has to do primarily, with this:

More imports than export: Value of currency goes down

More Exports than imports: Value goes up

Aiding in a foreign war (supplying weapons...) Value goes up

Involved in a Civil war: Value has major issues about exceptence

In a war against another country (in your country): Crimes, Value will go down, prices will go up because trade is problematic

In a war against another country (not in your country, you invade) Value may go up, supplying the war will cause an increase in the economy within the counrty...

hope this helps