An Econophysics Model for the Currency Exchange with Commission

TL;DR

This paper introduces an econophysics model for currency exchange incorporating commissions, drawing analogies from electrochemical systems to analyze currency attractiveness and exchange processes.

Contribution

It presents a novel model linking electrochemical principles to currency exchange, providing new insights into currency valuation and transaction dynamics.

Findings

Analogies between electrochemical systems and currency exchange processes.

Analysis of contact phenomena at electrode/electrolyte interfaces.

Application of electrochemical principles to determine currency attractiveness.

Abstract

In this paper an econophysics model for the currency exchange operations with commission is proposed. With this purpose some analogies and similarities of the processes that take place in the frame of the electrochemical system made from electrodes sunk into a solution of electrolytes and the process of the currency exchange and determination of the international currency purchasing power have been used. Some contact phenomena at the electrode/electrolyte separation surface, the physical principles of an electrochemical source operation and the determination of the sale attractiveness or the "potential" of the currency that is to be exchanged are also introduced and analyzed.