Newton's Third
Law On The
Dollar Exchange
What's the
exchange rate
today? Well,
let's see,
yesterday it was
such, the other
this, tomorrow
may be that.
That is the
reality being
lived in Costa
Rica today when
it comes to the
dollar exchange
rate.
In the past 10
days the dollar
exchange rate
for the buy has
gone from ˘503
to ˘532 and
today back down
to ˘525 and the
sell ˘513 to
˘544 and back
down to ˘535
today.
What is going
on?
No one has a
clear answer.
But, the common
feeling is that
there is a lot
of speculation
going on. And
while someone is
profiting
greatly from the
swings, there is
someone losing
greatly.
It is Newton's
Third Law of
Motion: To every
action there is
always opposed
an equal
reaction.
When applied to
the dollar
exchange, for
every buying or
selling, there
must be an equal
amount of buyers
or sellers on
the other side.
For every buyer,
there must be a
seller and for
every seller
there must be a
buyer.
But no one can
predict where
the final
settlement goes,
who is profiting
from each other
of their buying
and selling.
In this scenario
there is really
no such thing as
more buyers
today than
sellers or vice
versa. The end
result, however,
is another
thing.
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