Q:
What is the formula to convert currency?
A:
Quick Answer
To convert currency, obtain the current exchange rate, and divide one by the rate. The resulting number shows the value of one unit of currency in relationship to another.
Continue Reading
Credit:
Leanna Rathkelly
Photographer's Choice
Getty Images
Full Answer
- Obtain the current exchange rate
Find the exchange rate for the currency pair in question. Bloomberg provides a listing of pairings for major currencies.
- Divide one by the rate
Divide one by the rate obtained in the previous step. The formula used in this step is that the Y-to-X exchange rate is equal to one divided by the X-to-Y exchange rate.
- Use the answer to determine the new rate
Use the answer from the previous step to understand the value of one unit of the "Y" currency expressed in the "X" currency.
Sources:
Related Questions
-
Q:
How do money rate converters work?
A: Floating currency and pegged currency are the two most prominent ways to determine the exchange rate for a particular currency. A floating currency rate is... Full Answer >Filed Under: -
Q:
What is an exchange rate calculator?
A: Banks, currency traders, tourists, and others use exchange rate calculators to determine how much of one currency they can buy with another currency based ... Full Answer >Filed Under: -
Q:
Are all countries included on a foriegn exchange rate chart?
A: Countries that don't use a national currency are not normally listed on a foreign exchange rate chart, as shown by Trading Economics' list of countries wit... Full Answer >Filed Under: -
Q:
How does a bank exchange currency?
A: Banks exchange currency by selling customers one type of currency in exchange for another, based on the exchange rate for those currencies. For instance, w... Full Answer >Filed Under:
