Answer to Question #226339 in Macroeconomics for Apex

Question

how do countries choose their exchange rate

Answer 1

The fiscal​ (spending and​ taxation) policy that the choosing country will maintain.

The exchange rate depends on the political and economic situation in the world. Countries can influence it a little, depending on their needs. If they need export, they try to reduce the exchange rate of the national currency. Because $ 100 when sold on the domestic market will bring more money.