Foreign exchange rates tend toward equality around the world because of the actions of

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Arbitrageurs are traders who seek to profit from differences in exchange rates between two or more markets. Their actions serve to narrow the gaps in exchange rates between markets, eventually leading to greater equality in exchange rates globally. Central banks, stock markets, commodity markets, and the World Bank may also have an impact on exchange rates, but their influence is more indirect and less immediate than that of arbitrageurs.

Foreign Exchange Rates Tend Toward Equality Around the World Because