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It means you can make money trading a pair of currencies if both lose value compared to a standard. Likewise you can make money trading a pair of currencies when both increase in value compared to a standard. You mostly care about the change of a currency's value relative to another. If you think USD will decrease in value 10% versus gold and you think EUR ...


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I do not think this answer is definitive, but want to point out that there are two very different regimes: pegged or floating currencies. For a pegged currency, the central bank (or similar body) is attempting to keep the currency value pegged to an external currency or gold. (I am assuming this is a traditional peg, and not a currency board.) A current ...


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