Pegged Exchange Rates: Overvalued Currency

What is an overvalued currency? The only countries that have an overvalued currency are countries that have a pegged exchange rate. Pegged currencies are currencies for which the value of the currency is fixed (pegged) to another currency (like the US dollar of euro). They are considered overvalued if the pegged value is above the market exchange rate. In other words, there is a surplus of the currency in the exchange market at the peg.
This video is made for 1st year college students or AP/IB Economics students. It focuses on foundational economic concepts.

[@nathanjames3348]

Great video, thank you! Perhaps i will grasp all this on the 48th viewing...

[@jawwadashraf6184]

Very good

[@HolloMatlala1]

Still trying to understand BRICS idea or analogy.

[@wza223-fo3mc]

Bahamas 😂

[@Gsoda35]

the USD looks manipulated in comparison with the world economy. do you believe the JPY is undervalued? the JPY pegged to the USD might be a mistake.

[@earl8590]

would the central bank exchanging dinar for dollar decrease the supply of the dinar to match the demand as they would hold onto the reserves? How would it increase the demand for the dinar

[@earl8590]

goated