How Exchange Rates Work?
When traveling, it is usually necessary task to exchange your usual kind of money for this kind of money used in the area you are traveling. For example, if you are traveling from the US to China, you will want to exchange US dollars into Yen.
All currencies used in the world have a value. This value depends on the current market and fluctuates as much as the market itself fluctuates. You can also know more about currency exchange credit union via http://en.psfcu.com/currency-exchange.
Image Source: Google
Basically what happens when you exchange currency, you buy money? For example, if you want to exchange US Dollars into Swiss Franc, you are buying Swiss Franc with your US Dollars.
If you are looking to exchange money, you’ll want to see the exchange rate. Knowing how much money you will receive in exchange will require some homework on your end. You have to look for it, your local newspaper may be a good place to start.
If you’re local newspaper is not a reliable source for you, the internet can be a great resource as well. You can visit the stock exchange or stock-related sites and usually find information about the exchange rate.
However, before you can begin to get the exchange rate, you must know the kind of currency you want to exchange your money for. Here is a list of some countries and their money to help you get started:
o United States – US $ – US $ – US Dollar
o Argentina – ARP – $ – Argentine Peso
o Switzerland – CHF – SWF – Euro
o Austria – ATS – S – Austrian Shilling