Big Mac Index Currency Exchange

All currencies are not created equal.

Over the last decade the Zimbabwean dollar became utterly worthless because it was issued by a government that had so badly managed its economy that it would be hard to imagine worse. Nobody in the world trusted the Zimbabwean dollar and all currencies are based on trust.

While the Zimbabwean dollar was tanking the Swiss franc was soaring, prompting the country’s central bank to take action to try to weaken it.

Currency Values Fluctuate

The paper on which a $100 bill is printed is worth almost nothing. However, the bill has a value of $100 because people trust they can use it to buy $100 worth of goods or services.

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