exchange rate
An exchange rate is how much it costs to exchange one currency from another. As currencies around the world are constantly being traded (bought and sold), the exchange rate tend to change from week to week.
If the USD to CAD exchange rate is 1.0950, it means it costs 1.0950 CAD for 1 USD. The first currency listed always stands as 1 unit of that currency while the exchange rate shows how much the second currency (CAD) is needed to purchase 1 unit of the first currency (USD).
If the USD to CAD exchange rate is 1.0950, it means it costs 1.0950 CAD for 1 USD. The first currency listed always stands as 1 unit of that currency while the exchange rate shows how much the second currency (CAD) is needed to purchase 1 unit of the first currency (USD).
Calculations
Below is a table of exchange for the Thai Baht:
To change Thai Baht to the foreign currency, multiply the amount in Baht by the exchange rate.
Foreign currency = Thai Baht x Exchange rate
For example:
Bob is going to the US and changes 50 000 Baht to USD. How much USD does he get?
1 Baht is 0.027778USD
So, 50 000 Baht -> 50 000 x 0.027778 = USD1388.90
Foreign currency = Thai Baht x Exchange rate
For example:
Bob is going to the US and changes 50 000 Baht to USD. How much USD does he get?
1 Baht is 0.027778USD
So, 50 000 Baht -> 50 000 x 0.027778 = USD1388.90
Reciprocals
Currency conversion is about finding the difference equivalent between two countries' different currencies. If you know at least one exchange rate, you can use it to calculate the reciprocal.
For example:
1 Thai Baht = 3.403587 Japanese Yen
To find 1 Yen = x Baht, you must find the reciprocal of 3.403587 which looks like this:
1/3.403587 = x/1
Therefore, x = 1 divided by 3.403587
= 0.293808
Currency conversion is about finding the difference equivalent between two countries' different currencies. If you know at least one exchange rate, you can use it to calculate the reciprocal.
For example:
1 Thai Baht = 3.403587 Japanese Yen
To find 1 Yen = x Baht, you must find the reciprocal of 3.403587 which looks like this:
1/3.403587 = x/1
Therefore, x = 1 divided by 3.403587
= 0.293808
Commission
When a currency is exchange at a bank or with a money exchanger, commission is usually charged. This may be 1% or 2% of the total so you receive 99% or 98% of the money exchanged.
For example:
If 100 000 Yen is changed into Thai Baht at the rate mentioned above and the money exchanger charges a 2.5% commission, calculate the amount received in Thai Baht.
Percentage of money you will receive: 100% - 2.5% = 97.5%
100 000/3.403578 x 97.5/100 = 28 646.32 Baht
When a currency is exchange at a bank or with a money exchanger, commission is usually charged. This may be 1% or 2% of the total so you receive 99% or 98% of the money exchanged.
For example:
If 100 000 Yen is changed into Thai Baht at the rate mentioned above and the money exchanger charges a 2.5% commission, calculate the amount received in Thai Baht.
Percentage of money you will receive: 100% - 2.5% = 97.5%
100 000/3.403578 x 97.5/100 = 28 646.32 Baht