Currency Exchange Introduction 

He graduated from MIT and worked as hedge fund analyst...finance is his bread and butter...I know he does tons of videos on other topics, but this series is his most insightful....he’s taking his time b/c people think they understand currency....but they don’t. Good job sal

Successful people don't become that way overnight. What most people see at a glance- wealth, a great career, purpose-is the result of hard work and hustle over time. I pray that anyone who reads this will be successful in life..

He's saved me and guided me to get through college. Thank you, Sal.

You're an AMAZING teacher. I'm 12 and I can understand this.

One of the best explanations I came across so far, in my opinion

Simple explanation for a simple market. Now on to other variables that influence exchange rates. Thanks Sal!

Dear Khan Acadamy, You rock! I've been wanting to understand this for such a long time, and you made this SO MUCH easier to understand. Best wishes to you :)

Wow!! that was so simple... no fancy terminology was needed at all to explain the basis of the currency exchange process... Thanks again!!

Thank you so much. Your explanations are very clear and simple, which helped me a lot.

lets say. lets say. lets say. lets say. lets say. lets say

The philosophy of the rich and the poor is this. The Rich invest their money and spend what is left. The poor spend their money and what is left:

hey khan, can u make a series of videos on the european debt crisis. Youre extremely clear and concise and many explanations on the european crisis are really confusing.

WOW I’m FINALLY able to understand this concept of supply and demand after seeing a bunch of other videos that didn’t make things clear.

Sal, as usual, you continue to overwhelm me!!. Thanks you so much.

I can literally type in anything I have trouble with + khanacademy into the search bar, and I get a video for it. The man's a legend.

I can't wait for the next video.... Looking forward to your explanation of how Businesses trade internationally, how Holiday makers also influence currency prices and how the prices of products and services rise due to increase in cost and exchange rate of Foreign goods! You're a top dude Sal

Fantastic. Easily understood. Been wondering about this topic for some time. Appreciate the good work.

Thanks so much you have helped me understand currency rates a lot more mr Khan. Can you convert other foreign currencies aswell? Hugely appreciate the grade you've changed in my maths exams, I got A* in my maths GCSE. Keep it up! 👍👍

What a awesome RU-vid video all blacked out just voice utterly outof the void 🎉

So as a country, we shouldn't be printing too much of paper currency or the value of the currency will go down. Is that right?

woah, i never thought about currency like that. i'm taking economics right now and i'm so glad i watched this video because my teacher is horrible and i'm sure i wouldn't have understood it as clearly.

Thanks for this video .Simply superb and quiet easy to understand

Good introduction Sol. I love your classes. Great to advance learning during this pandemic.

It is hard to follow when you repeat yourself so often, but thank you for the videos

DOES THIS MAN KNOW EVERYTHING???!!!! WHY??? HOOWWW????

@rrayoflight Disagree, the writing helps to cement the idea in the viewers mind. If he was just to say it, and not write it, the viewer would start to drift off, much like in a classroom setting where the teacher might go off on a tangent only to lose their students attention, as well, there train of thought. He knows what he is doing and he's got a great way of explaining things, don't bring him down to the lowest denomination = typical teacher.

So if I went to a place where the currency was less than the dollar i would be chilling? For example I want to travel to Norway eventually and I’m only 19 so my knowledge is pretty weak on travel. The Norwegian Krone is weak so it would be cheap to travel? How about Brazil?

Hey Khan, the person who translated this for you from English to Dutch kept using (Japanese) Yen, instead of (Chinese) Yuan. Could you please correct this. In Dutch Yuan is also Yuan, not Yen.

Which authority or board announces price of the dollar or the exchange rate

Yuan (yoo- en) translates roughly into "buck" renminbi translates into "the people's money" Renminbi is then refers specifically to money from the PRC while a yuan can be from any country.

Great video you made here --and I was wondering if you could recommend a foreign exchange company I can use in Canada, to but quite a large sum of US dollars, and how I can "protect myself" from being ripped off from a not so reputable Foreign Exchange Broker, that disappears with my money. You sound very knowledgeable in this area, and would appreciate your advice -- thanks from --Canada :)

People still convert if it's really needed to. Is it ok to say that the demand of exchanging by both side affects the rate?

Thank You for making it so easy to understand.

Hey Mr. khan you are doing a great job by posting these videos. A big thank you for that. And I have a question that why there should be equal supply and demand? And why can't we just buy it for a standard rate of exchange which never changes? these are 2 independent questions.

Is this series organized? I want to listen to it in series

I am just 14 and i understood this hard topic and now I am feel that I am a 'Superman'.

This is very simple to understand, thanks!

we use the word Yuan in daily life, we can put a number in front of the Yuan(10 Yuan, 20Yuan) RMB its rather the name of a general term

I finally figured out what my friend was when he worked at the World Trade Center. That's b/c he's visiting me right now and told me: He was a trader. I should have just asked him what that means but I was afraid he'd find me REALLY stupid. So I didn't ask. He knows what this video is about and thinks it's self-explanatory. Maybe for HIM it is. Not for me.

In your example in this video What i want to know is How in the first place 1 usd=10yuan. Who fixed or how is it determined.?

excuse me im so confused i really need a response asap i put in 2 bucks into bitcoin thru cashapp and my exchange rate right now is $6,559.20 can i get that much money back if i sell please plz plz get back to me asap i need a better understanding of this thank you

If markets were fair, this would be true, but the general public is not informed enough to make these types of decision. The market price is set, which means that you accept the price or you don't get any trade.

Wow you made this easy to understand

Really nicely done

khanacademy. you are Genghis khan of economics!!!

Nice video!! Very engaging from beginning to end. Nevertheless, businesses and investment are the easiest way to make money irrespective of which party makes it to the oval office.

@Chonch95 Well, I personally don't see how that's annoying, but everyone has their pet peeves. But understand that Sal is just one person. In adjusting the way he teaches to better suit your learning style, he may be taking away the experience of others. He cant please everyone but what he can do is please the majority. From what I've seen, nearly everyone loves the way Sal teaches. You're just part of the minority Sal can't please at the expense of said majority. No hard feelings, bro

Thank you for this video. May you also find this link helpful.

Good video, very helpful. To previous commenters does it really matter if he was using "Yuan" or Dollars of potato chips. Let his pronunciation of Yuen go. Thanks for the help.

Can you make a complete outline for this video ?

Do you upload a video everyday? THANK YOU!

Nice video, but I think you should first give a quote, like conclusion and then explain us the meaning of that conclusion, so we can understand better and faster. P.s. Just a personal opinion, still a good vid

@Chonch95 Do you even understand the process of how learning works? When introduced to a concept that is foreign to you, you'll have a better chance of retaining the information if certain points are repeated to you than if it's just said once. That's just common sense. I love it when Sal repeats himself. It feels as if he's a human who is really trying to help me and is not just some robot behind a screen. If you don't like the way in which he teaches, go make your own videos. Simple.

Please why PPP is a building block for almost all exchange models ??

5:48 "ONEthousand YUAN that WANts to be traded." I lost it :D

Speed 1.25 x works really well!

I went to the library to ask if they had any books on currency exchange, travel restrictions, and human rights. It was closed.

Why would you not use the exact exchange rate? Now would of been a great time!

Dude, you are awesome!! 👍🏽🙏🏽💪🏽

I'm sure your friend would not have the same attitude for every subject, if he did, he would be lying. There are some people who are naturally good with this sort of things, I am not one of them. I have nearly completed a degree in biochemistry and psychology, going up to Calculus III and learned the most amazing and complex equations in classes like Biophysics. Nonetheless, I re-watched parts of this videos a good few times. Persevere, learn, understand - no set timings attached to that.

U should have explained which point these two currency hit the balance

Really really good explanation!

getting confused with indirect/direct and spread bid-ask exchanges and how to calculate

Wow ok so it has little to do with the economy of the country it's all about how many people want to change their currency into your currency

I just stumbled on a goldmine, my account manager is such an amazing trader 😉, Mr Paton i can’t thank you enough, too bad I just got to meet him big💰always.

I felt like you were fuckin with us at the beginning lmao, like after setting up the stage gonna say "all these people will go to the currency exchange... the end"

@michaelteter why? I like Khan talking!

Thank you for your clear explanation. :)

But why would there be a big demand for yuan?

You repeat everything you say when you are writing... -.-

Character In the video It's great, I like it a lot $$

I think the opposite Rib. Since we live in a few countries (use 3 dif. currencies). It applies more and more to expats. Your view is egocentric. I believe the currency trade info is one sided in that it is for investors who use currencies online and not in real life/buying property/goods/stocks.

well explained... you're good!

Thank u

So has the dollar lost value because it us exchanged ar a lower rate? Or because more Dollars have been created? And that the Pond remain higher value because no english man in their right state if mind would trade the pound at lower cost... So we can print as much money as we want, and not devalue the currency...😘

Currency exchange is the biggest business in the world now. It is the largest capital market known also by foreign exchange. It is not hard for people to enter this business they just need a foreign exchange broker. My broker is ECNCAPITAL who help me with my trades. And they always try to make sure that their clients can manage profits by their trades. They also help to reduce the risk of their clients’ trades.

It’s actually Sal Khan’s voice!

@gxryd3r Yes, but as long as the inflation (making more money) is not to fast, we will still have enough money. For example, if by next year $1 now is equal to $10 then, then nobody will have enough money. But if it takes 20 years for that to happen, then people will have been keeping up, and it ends with a good outcome. The simple answer: Yes.

yuan. not won.

Thanks Mr. Khan, however, I still believe that there are plenty of currencies manipulations in the market and there is no way that one nation can control the world currencies...not the US, China or Russia.

intresting, i had no idea!

for one, if the Japanese want to do business w/ Mexico then Japan will have to buy much of its currency so the demand for the the Mexican peso would rise

no... the won is the currency of North Korean and its pronounce yun mun bi in cantonese...

good stuff

Great

My Econ teacher at SMUS says "won" for Chinese currency too. It's probably because the consonant "ɥ" does not exist in English.

Wouldn't the Chinese government just print an extra 1000 Yuan and release it in the market to keep the exchange rate fixed?

Thank you for thiz vid!

Thank you Sal

Amazing

And another thing: The exchange rate has already been set by someone, so I don't understand this video anymore based on that evidence. My trader friend said it's already been set on a site called exchange, dot com. That's where I can check to see if he's right. I don't need to check, but did anyway and not surprisingly he was right. He does all this crap in his head and makes me feel more stupid than anything.

Yuan or Renminbi

"You-awn" ...won is korean

Yoo-ann

@rrayoflight wrong!

crazy dawg

Forex and bitcoin is the leading partway to the future. I wasn’t a fan of bitcoin till I started trading with Chris . This guy trading skills is top notch. Just received another payment into my bank account. I just bought my 3btc

that was so awesome!!!:D

@whartanto2 It dosent work that way, If it would, every country would do that which leads to money surplus, eventually no value for money.

@rrayoflight How dare he not specifically tailor his videos to you!