Juan vs dollar

Money is sold on the open market like any other commodity. If the demand for the dollar goes up the price of the dollar goes up. Simple supply and demand. Say the dollar is worth 6 Juan. If a gizzmo in China cost 6 Juan and I want to buy one I pay one US dollar for it. If one smizzmo in the US sells for 1 dollar a Chinese merchant can buy one for 6 juan. Now China sells Juan on the open market and it drives the cost down. Meanwhile China buys dollars on the open market and it drives the cost up. So now 4 Juan is worth one dollar. People buy more because the price is lower. China exports gizzmos to the US and people buy them at 4 Juan rather than 6 Juan so sales increase. US exports smizzmos to China and the people buy 4 for a dollar instead of 6 for a dollar so they buy less. Sales decrease when the price goes up. The currency for most countries depends on the open market price which is determined by supply and demand. China manipulates the open market price by buying and selling its own currency while at the same time buying and selling dollars. About 20 countries, most notably China, have engaged in such practices over the past decade at an annual rate that has averaged $1 trillion in recent years. The U.S. trade deficit has been several hundred billion dollars a year higher as a result and we lost several million additional jobs during the Great Recession.