Wouldn't the value of the dollar go up if everyone in America traded their money into foreign higher currency

Question

Wouldn't the value of the dollar go up if everyone in America traded their money into foreign higher currency

Answer 1

That would make the value of the foreign currency go down. The value of a dollar is in relation to the assets backing the dollar. Once upon a time the dollar was a dollar worth of gold, but you will see now its not. As more money gets generated it lessens the value. Our dollar value is also going down because there is a good chance when you trade to a country, we probably owe them money. Keep in mind, in order for something to be High, there has to be a low, and we are that low. All economy is connected and relative, you would trade for higher currency, but when you trade back you still get the same american value, unless you played the market and the dollar value dropped.