👉 Currency fluidity refers to the ease with which a currency can be exchanged between different countries or within the same country's various regions. It is influenced by factors such as market demand, economic stability, government policies, and overall confidence in a nation's financial system. A highly fluid currency can be easily converted into other currencies, facilitating international trade and investment by reducing transaction costs and risks. Conversely, a currency with low fluidity may be difficult to exchange, leading to higher transaction costs and potential barriers to cross-border financial activities.
