There are many instances where you may need to exchange currencies, like travelling to a foreign destination, investing in foreign assets, paying fees of foreign universities etc. Whenever you are dealing with foreign exchange, it becomes compulsory to research about the exchange rates and make calculations using them.
Though it is quite easy to find the exchange rate quotes, most of us cannot make the calculations to find how much currency we exactly need to exchange. Currency converter is an excellent tool for this purpose. They help us to make currency exchange calculations in a jiffy without wasting too much time.
Before we discuss more about currency converters, let us understand how to find and read exchange rates.
Foreign exchange rates are always given in pairs. The quote denotes the value of one currency that is required to get one unit of the other currency. For example, CAD/USD denotes the number of US dollars needed to purchase one Loonie. The value of currency pairs keeps fluctuating due to a number of factors such as the economic and political conditions in the countries, the demand for the currencies in the forex markets, economic indicators, hedging activity and so on.
You can find the exchange rates for different pairs of currencies at your bank, currency exchange firms, currency brokers or vendors, airport kiosks, forex trading platforms, websites of foreign exchange companies, etc. However, it is important to keep in mind that airport kiosks and private currency vendors charge a huge commission or fee that is included in the exchange rate. It is always advisable to compare the exchange rates before converting the currency.
Using a Currency Converter
Calculating exchange rate is the most challenging part for many of us. Calculating the exchange rate manually is confusing and time consuming. Moreover, there is always a risk of errors while doing the calculations manually. Currency converter helps us to do the calculations in a quick and exact manner. You just have to choose the currency you have in hand and the currency you require. The converter will do all the calculations and will give you the accurate amount of currency you need to convert. The process is simple and easy.
You can find a currency converter on the websites of reputed foreign exchange companies and banks. Using a converter helps you to make the calculations in an accurate and quick manner.