A country’s currency is exchanged for another through foreign exchange rates. For example, 1.0 British Pound is equivalent to 1.29 US Dollars. As such, one could exchange these currencies with each other for those values. The foreign exchange market determines the values of exchange rates through continuous buying and selling in currency trading. The view that a strong currency equals good, and weak currency bad, is misleading. A strong currency is beneficial for importing. It also stimulates trade capital by encouraging investment into a country’s assets rather than buying their goods. However, a weak currency is useful if you are a large exporter – as this persuades sales of goods. Nonetheless, economic growth requires investors to maintain a stable currency.