How to calculate foreign currency exchange rates
Updated: February 26, References. If you're planning to go abroad and exchange your money for another currency, it's a good idea to figure out how much cash you'll have after the exchange. Also, knowing exactly how much your money is worth can prevent you from being charged unreasonable fees because you'll be able to calculate your losses and choose which method to use if you plan in advance. Being aware of how much your foreign currency is worth is a smart travel move that can potentially save you quite a bit of trouble.
Exchange rates
Updated: February 26, References. If you're planning to go abroad and exchange your money for another currency, it's a good idea to figure out how much cash you'll have after the exchange.
Also, knowing exactly how much your money is worth can prevent you from being charged unreasonable fees because you'll be able to calculate your losses and choose which method to use if you plan in advance. Being aware of how much your foreign currency is worth is a smart travel move that can potentially save you quite a bit of trouble. To calculate exchange rate, multiply the money you have by the current exchange rate, which you can find through Google or by calling the Department of the Treasury.
To learn where and how to exchange money, read on! Did this summary help you? Yes No. Log in Facebook. No account yet? Create an account. We use cookies to make wikiHow great. By using our site, you agree to our cookie policy. Article Edit. Learn why people trust wikiHow. To create this article, 31 people, some anonymous, worked to edit and improve it over time.
Together, they cited 9 references. This article has also been viewed , times. Learn more Explore this Article Doing the Math Yourself. Using Other Conversion Tools. Exchanging Currency. Tips and Warnings. Related Articles. Article Summary. Part 1 of Estimate the amount of money you wish to exchange. Think about how much money you're budgeting for the trip. Or, if you know how much money you'll need in the other country, work backwards and start with the foreign currency.
Look up the exchange rate of the currency to which you wish to convert. You can find this information on a Google search, or on several banking or financial websites. Note that you want to set the currency you have to 1; the value listed next to the currency you're exchanging to is the exchange rate. Calculate how much money you'll have after the exchange. Multiply the money you've budgeted by the exchange rate. The answer is how much money you'll have after the exchange.
If "a" is the money you have in one currency and "b" is the exchange rate, then "c" is how much money you'll have after the exchange. For instance, say you want to convert Euros to US dollars. At the time of this revision, 1 Euro is worth 1. Your exchange rate is 1. The answer, Here's an example of the "work backwards" method.
Say that you know you'll need 20, Hungarian forints for your trip. You discover that 1 US dollar is equivalent to To figure out how many US dollars you would need to save at the current exchange rate, divide 20, by Part 2 of Check for an up-to-date conversion rate online. There are many websites [1] X Research source [2] X Research source that constantly update their site with the current conversion rates for currencies around the world. These are good places to look for the exchange rate, then use the equation in Step 3 above to calculate currency totals.
Contact the government for accurate exchange rates. Google the conversion you want to know. Simply type into a Google search bar what conversion you want to make and Google will tell you the answer using their currency converter.
However, because Google's finance converter does not constantly track and update current currency exchange rates, this information is more of an estimate and should not be relied on as accurate up-to-the-minute data.
Part 3 of Ask your bank. Many banks, especially larger ones like Bank of America or Wells Fargo, keep foreign currency on hand in the branch. And, even if you are not a customer, these banks will usually allow you to exchange currency for a fee. If your bank's branch does not keep he currency on hand, they can often order it for you. This usually takes about business days.
Use a currency exchange service. Most major airports have currency exchange services that use companies like Travelex [8] X Research source to help travelers exchange their home country's money when they arrive in a new destination. These services often charge much higher fees than exchanging currency at a bank because they are in prime locations like airports where people need local currency quickly.
Use an ATM in a foreign country. Sometimes the easiest way to exchange money is to simply use your card at an ATM while you are traveling. Not Helpful 4 Helpful Not Helpful 9 Helpful I have an international hotel bill JPY that has an exchange rate of. How do I calculate the daily hotel charge? Blake Nouribekian. If your hotel bill was , Yen and you multiply it by. Divide that by how many days you stayed. Not Helpful 2 Helpful 7. Not Helpful 15 Helpful At a recent exchange rate, 16, naira were worth rand at a Nigerian or South African bank.
Not Helpful 4 Helpful 1. Not Helpful 12 Helpful 6. Check with your local bank to see if they can. If not, there is a currency exchange at almost every major airport that will.
Not Helpful 16 Helpful 5. Are you asking about how to calculate exchange rates? If so, there are smartphone apps that do that. You can choose any two currencies and see the exchange rate from one to the other. Not Helpful 14 Helpful 2. Find out the current euro-to-dollar exchange rate, and multiply it by the price in euros.
Not Helpful 1 Helpful 0. Not Helpful 0 Helpful 0. Include your email address to get a message when this question is answered. Always use up-to-date rate tables to figure your exchange rates.
Currency exchange rates fluctuate frequently. While you can get a rough estimate using old rates, if one or the other currency changes value, and you are exchanging large amounts of currency, it can add up to a lot.
Helpful 0 Not Helpful 0. Related wikiHows. Co-authors: Updated: February 26, Categories: Foreign Exchange Market. Article Summary X To calculate exchange rate, multiply the money you have by the current exchange rate, which you can find through Google or by calling the Department of the Treasury.
Deutsch: Einen Wechselkurs berechnen. Italiano: Calcolare il Tasso di Cambio. Bahasa Indonesia: Menghitung Kurs. Nederlands: Wisselkoersen berekenen.
Travelers looking for simple conversions can often find rates posted at airports1 or local banks, while international investors trading in the foreign exchange ("forex. Exchanging foreign currency is an essential practical task, which all treasurers need to tackle Note the ordering of the currencies in the exchange-rate quote.
While exchange rate quotes are relatively easy to find these days, reading and making calculations based on them can be a little more challenging for those that aren't familiar with the techniques. In this article, we will take a closer look at how to find and read currency exchange rates as well as some other tips to keep in mind when using them. Exchange rates can be found in a number of different places, ranging from commercial banks to specialty websites like XE. Quotes themselves are always given in pairs since currency values are always relative to one another.
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Forex —The foreign exchange market forex is a global, decentralized, over-the-counter market for the trading of currencies and is the largest market in the world followed by the credit market. This market is a necessity because one unit of currency very rarely equals exactly one unit of another currency. The forex is able to facilitate the receipt or payment of units of currency that are equal in value.
HOW TO CALCULATE FOREIGN CURRENCY
If you're not careful, currency conversion fees can cost more than you expect. To get the best bang for your U. According to Douglas Stallings, senior editor for Fodor's Travel, travelers need to be aware of currency exchange options abroad because of costs. In lieu of foreign currency exchange desks at airports and major hotels, there are more convenient and cheaper ways to exchange currency, Stallings says. While some desks advertise "no-fee" exchanges, they still build in a hefty profit by offering a high rate. Before your next trip, take a look at the best and worst methods of currency exchange by following Bankrate's "thumbs-up" or "thumbs-down" rating:.
How to Calculate an Exchange Rate
Exchanging foreign currency is an essential practical task, which all treasurers need to tackle with confidence. Exchanging one currency for another needs us to apply a quoted market price, known as the exchange rate. Sometimes we need to multiply by the rate. Sometimes we need to divide by it. We simply multiply the quantity by the money price per unit. The commodity quote is a variable amount of money per fixed conventional unit of the commodity. Oil prices are quoted in dollars per barrel. So, multiplying a number of barrels by dollars per barrel gives the dollar value for the exchange.
An exchange rate is how much it costs to exchange one currency for another.
