Value of the Linden against the U.S. dollar

[SookiCatalina]

Over the past 2 years when I have bought Lindens on the Linden exchange, I think the exchange rate was 330-350 lindens per U.S. dollar each time. Today I was going to buy some lindens and saw that the going rate was only 240L/$1. Am I mis-remembering the past exchange rates, or is it typical for the rate to vary that much? Who determines the exchange rate? My enquiring mind wants to know.

Edited April 30, 2022 by Auburn Atheria
clarification

[LittleMe Jewell]

53 minutes ago, Auburn Atheria said:

Over the past 2 years when I have bought Lindens on the Linden exchange, I think the exchange rate was 330-350 lindens per U.S. dollar each time. Today I was going to buy some lindens and saw that the going rate was only 240L/$1. Am I mis-remembering the past exchange rates, or is it typical for the rate to vary that much? Who determines the exchange rate? My enquiring mind wants to know.

You are mis-remembering.  At no time in the past 2 years -- and not even the past 5 years -- have we been able to buy L$ at a rate of > L$300 per US $1.00

Here is the chart showing the exchange rates over time, since 2005.  As you can see, it has been a really long time since it was over L$300:

 

 

Side note -- Regarding "who determines the rate"?  The Residents.  It is all base on what others are willing to sell their L$ for.  Just like the US Stock Exchange.

Side, side note:  If you are willing to wait a short bit -- maybe half an hour -- you could put in a Limit Buy, requesting L$250 per US $1.00.  I did that a few days ago and the order was filled in a bit over 25 minutes.

Edited April 30, 2022 by LittleMe Jewell

[Chic Aeon]

1 hour ago, LittleMe Jewell said:

Side note -- Regarding "who determines the rate"?  The Residents.  It is all base on what others are willing to sell their L$ for.  Just like the US Stock Exchange.

I don't think that is completely true, is it?   Long ago LL published info about the flow of money and just like real life governments, they "did" and "can" play with the value of the money. This is one reason why it has been SO stable over the years.  I have been doing the math (not buying just seeing the US value to the lindens) at 250 to 1 for-e-ver. It is just so simple to do that way LOL.   

Of course we have more FEES now so "net" especially when sending out to Paypal is less than it has been historically.     

[LittleMe Jewell]

25 minutes ago, Chic Aeon said:

I don't think that is completely true, is it?   Long ago LL published info about the flow of money and just like real life governments, they "did" and "can" play with the value of the money. This is one reason why it has been SO stable over the years.  I have been doing the math (not buying just seeing the US value to the lindens) at 250 to 1 for-e-ver. It is just so simple to do that way LOL.   

Of course we have more FEES now so "net" especially when sending out to Paypal is less than it has been historically.     

True, LL does manipulate it enough to keep it fairly stable.  

[Wulfie Reanimator]

47 minutes ago, Chic Aeon said:

I don't think that is completely true, is it?   Long ago LL published info about the flow of money and just like real life governments, they "did" and "can" play with the value of the money. This is one reason why it has been SO stable over the years.  I have been doing the math (not buying just seeing the US value to the lindens) at 250 to 1 for-e-ver. It is just so simple to do that way LOL.   

Of course we have more FEES now so "net" especially when sending out to Paypal is less than it has been historically.     

@Supply Linden at least used to add large amounts (+1M) to the linden exchange to increase the supply and bring the price down, they may also buy the surplus if the price gets too low. (Sadly there's no Demand Linden.)

Edited May 1, 2022 by Wulfie Reanimator

[Coffee Pancake]

3 hours ago, LittleMe Jewell said:

True, LL does manipulate it enough to keep it fairly stable.  

There was a very brief period where the L$ was run as like a "real economy" .. it sucked in speculators and the value tanked .. A high exchange rate might be good for people buying L$ to spend, but it was a disaster for everyone who needed to sell L$ to pay their tier.