The fact that exchange rates are nearly identical in different markets around the world is due to

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The nearly identical exchange rates in different markets around the world are due to the actions of arbitrageurs. Arbitrageurs take advantage of small differences in exchange rates to buy and sell currencies across different markets, which ultimately leads to the equalization of exchange rates. Central banks and policy makers may play a role in shaping exchange rates, but they do not directly ensure that rates are nearly identical across markets. Speculators and currency converters may also impact exchange rates, but they do not explain why rates are nearly identical across markets.

The Fact That Exchange Rates Are Nearly Identical in Different