The more prosperous a nation, the more common its currency is in foreign countries. Today, the most common currencies is the US Dollar, the Euro, the Japanese Yen, the Chinese Yuan (or renminbi), and the British Pound. As you can see, all of these countries (or conglomerate of countries) are the most prosperous and industrialized countries in the world.
When going on vacation, you would usually like to go somewhere where you’re interested in going, but also it’s wise to maximize the exchange rate. The exchange rate is simply the value of your currency in terms of another one. So the more foreign currency it takes to equal your local currency, the better your vacation experience will be in that country.
Exchange rates change from time to time, according to market conditions. There are multiple market conditions that can affect the exchange rate, most notably inflation and deflation. Inflation and deflation can either make your currency worth less (inflation), or make it worth more (deflation).
Then there are tariffs and quotas. These basically limit the amount of a certain country’s currency that is available to an outside nation. This, of course, raises the value of your currency, but that’s not the way that you want your currency to gain more value, because there are multiple side effects from having tariffs and quotas.
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