Every time you cross a border, send money abroad, or buy something from another country, exchange rates affect you. Use these questions to discuss why currencies move — and what that means for your money.
Why do different countries have different currencies? What are the real advantages of a shared currency like the euro — and what do countries give up when they join one?
Try to use: monetary sovereignty, exchange rate risk, currency union, fiscal policy, eurozone
If the US dollar weakens against the euro, who benefits — American exporters or American importers? Walk through your reasoning step by step.
Try to use: competitive advantage, export price, import cost, trade balance, currency depreciation
Have you ever lost money because of currency exchange rates — on a holiday, a purchase, or a transfer? What happened? How could you have protected yourself?
Try to use: exchange rate risk, FX loss, hedging, forward contract, timing
Some countries peg their currency to the US dollar to create stability. What are the advantages of doing this — and what happened to countries whose peg collapsed?
Try to use: currency peg, fixed exchange rate, foreign reserves, speculative attack, Argentina, Thailand
The US dollar is the world's reserve currency — most global trade and commodities are priced in dollars. Why does this give the United States extraordinary economic and political power?
Try to use: reserve currency, petrodollar, dollar hegemony, sanctions power, exorbitant privilege
Cryptocurrency was promoted as a global currency without borders or governments. Has it succeeded? What problems does it solve — and what new problems has it created?
Try to use: volatility, store of value, decentralized, speculation, adoption, regulatory risk