The
money exchange value is a quantitative relationship expressing the relationship of one commodity in terms of another. The money exchange value is a relative concept. It varies in respect to place and time. A person sitting in India would have to pay approximately eighty rupees to buy a pound. That means the exchange value of a pound is the above mentioned amount in terms of rupees. But the value of a pound will obviously be different in some other part of the world.
What dominates the
exchange value of money, or for that matter any other commodity, is an undecipherable actuality. Marx would however argue that value is the socially necessary labor time of society expended on a commodity. But this hardly makes the cut. Money exchange value, neo-classical economists opine, is the price at which money will trade in a given market. The value of money is the price of one country's currency in terms of another country's currency. If the money exchange rate of one country's currency is higher in respect to another, then, the relative value of the former is higher with respect to the latter. In the world context, the value of the dollar is often compared to the Japanese yen while the British pound is often brought in comparison with the Euro.
The
value of money exchange is the price at which one country's currency can be converted into another's. However, the value of money does not show any drastic changes on a daily basis in the market. The exchange rate of money is actually in broader economic terms the exchange value of money. These rates may both be fixed or flexible. The value is thus the worth of a currency in terms of another. A currency appreciates or depreciates in value with respect to another.
In terms of banking, the exchange value of money is the money itself that is used to settle international trade between countries. Through this process, value is created for manufactured goods and services that are imported and exported between countries. The international obligations resulting from these transactions are settled by creditors and borrowers to whom the exchange value of money registers as a reality. The countries whose currency values are not strong enough to be recognized in the international market can benefit from money exchange in the sense that they can finance their imports through buying of foreign currency.