British Pound versus American Dollar?
I am not much of an Economics person myself, but this question has always puzzled me:
How come the British Pound carries more worth than the American Dollar (1 GBP = 1.83921 USD), despite the fact that America’s GDP is way ahead of Britain’s GDP?
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Tagged with: america • american dollar • Britain • British • british pound • Economics • gbp • GDP • person • question
Filed under: Currencies
Currency conversion is calculated using a number of factors including the country’s output, the supply and demand of currency is important, expectations, as well as the foreign currency reserves of a country. A country can also artificially keep its currency worth more. Historically, Britain has kept the Pound stronger and it has stayed that way even today due to numerous economic polices of the British government.
There’s a lot more dollars in circulation than pounds.