To understand the determined value of money, we need to know that there are three major factors that are important. Those factors are the amount of dollars held in foreign reserves, the value of Treasury notes, and the exchange rate.
One of the most important factors in determining the value of money is supply and demand. The more demand for certain goods or currency, the higher the currency or goods. This usually happens when demand exceeds supply.
Each country has its own currency and the political and economic situation in a country greatly affects the stability of the value of this currency. Then, the chart money value of each currency in each country also varies.
The more politically and economically unstable the country is, the lower the demand for the currency. This is even more so when the currency is measured by its equivalent value in US dollars. For example, now it takes Rp. 14,691 to buy one US dollar. So it can be said that the value of US dollars is higher than Indonesian Rupiahs.
The value of money can fluctuate. Chart money value can also go directly with things that are very valuable and valuable in themselves. This is one way of showing that the value of money is always associated with gold, whereas if from its form, money is just paper if it has no purchasing power.
Money itself is not useful or not valuable, it is because, without the use of it, money is just a regular paper. Money has value because it has an exchange value for other goods and services. A lot of people demand money because of the benefit it offers or we can say, its purchasing power.
The currency continues to fluctuate from the economic and political situation of the country, one of which is the US dollar. Some time ago, the US dollar decreased. This is when compared to the dollar value in March 2020.
It was also reported that the value of the US dollar is now falling from its peak, but when compared to the highest value of the dollar last year, namely 2019, the current dollar value is still above the dollar value last year (even though last year was a good year).
Money is a legal payment that can be exchanged for services or goods.