Exchange Rates - All You Need To Know 😉

We all know the term “Exchange Rate” but there are many things about exchange rate which you may not know.:money_mouth_face: So, I decided to let you guys know about those details. Let’s check out.

What is an Exchange Rate? It’s a way to describe how the value of one country’s currency compares to another country’s currency.:money_with_wings:

Exchange rates are usually labelled with the currency codes of the two currencies being compared. For example, GBP/USD exchange rate. The first currency listed is the one being purchased.

The number describes the price of one currency in terms of the other currency. So, GBP/USD exchange rate is 1.32 means you need to pay USD$132 to purchase GBP£100. :atm:

Why are exchange rates important? If you are travelling somewhere in the world, no matter whether that’s for a short time or long time, you need to be aware of the exchange rates when converting or spending the money. They also play a major role when you are transferring money internationally.:moneybag:

Revolut has no hidden fees and offers great exchange rates, making it simpler and more affordable to send money abroad. Just choose how much you want to send and where to.

Why do exchange rates change? Exchange rates are floating all the time as foreign exchange traders buy and sell currencies. When a currency appreciates, its exchange rate with another currency increases and more of the foreign currency is needed to buy one unit. If a currency depreciates in value, that means its exchange rate with a foreign currency goes down and less of the foreign currency is needed to buy one unit.:abacus:

Where can you see exchange rates? You can use our foreign currency converter widget to compare current exchange rates across all the currencies of the world.:earth_africa:

Hit “like” if you think this is good.:heart_decoration: Let me know in the comment section if you want to know about anything else.:arrow_double_down:

Veda | Community Team


You didn’t mention the effect of Spread on exchange rates…

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