Teaching Activity: Exchange Rate Simulation
- A-Level, IB
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 17 May 2021
This fun activity helps students to explore how exchange rates are determined in a floating system as well as the importance, for economies, of holding foreign currency.
In the simulation, students split into two groups to represent two different countries, and then take part in two ‘auctions’ for buying sets of goods, firstly domestically and then internationally.
This activity is likely to take around 60 minutes. Give it a try!