The currencies of different countries of the world have a particular characteristic: Not all have the same force, or the same support. That’s why when we talk about foreign currencies exchange, there are currencies that have minor value in front of others and at the monetary market they are called weak currency.
When you want to exchange foreign currencies we should consider which and what is the exchange rate. An exchange rate is the difference of value between two currencies , that means that it is the currency needed to buy the other.
Foreign currencies exchange can be done with currencies in which the value dollar does not intervene, for example yen/Swiss franc at 156.60, this exchange rate that is called crossed means that a yen can be changed per 156.60 Swiss franc.
When we talk about foreign currencies exchange, we should also consider that there are two different kinds of exchange rates. One is the flexible system and the other is the fixed one.
In the flexible exchange rate system the Central Bank, adjust the exchange rate to modify the supply and demand to generate a major or minor income of foreign currencies.
A fixed exchange rate system will be very favorable for whom want to exchange foreign currencies as currencies do not fluctuate, they are fixed one according to the other. This kind of exchange rate makes the monetary authority Central Bank have an important reserve of national currency as foreign currency. In Argentine, for example, during the 90’s they set up an exchange rate fix, fixing the peso to the dollar, and so, this allowed foreign currencies exchange to be favorable to get consumer goods and travel abroad.