Exchange Rates and The EU

The amount of foreign currency that can be bought for one’s own currency is called the exchange rate for that currency.

Example: €1= £0.88, $1.39

Exchange Rates

Can be bought in banks, building societies, credit unions, post offices and in bureaux de change.

Foreign Currency

If you wish to buy foreign currency you refer to the “We Sell” price, i.e. the price which the agency will sell to you.

WE

We Buy We Sell

1.34 1.30

John purchases Dollars for Quote from Bank (Bank Sells)

“We Sell”

If you wish to sell foreign currency you refer to the “We Buy” price, i.e. the price for which the agency will buy the currency from you

We Buy We Sell

1.34 1.30

John sells dollars to bank (Bank Buys)

“We Buy”

When you are using the “We Sell” you Multiply by quoted amount

Rule

When you are using “We Buy” you divide by quoted amount

Rule

John wishes to exchange €1000 for US dollars and gets the following exchange rates

Example

We Buy We Sell

1.34 1.30

John arrives home from his business trip with $100 and wishes to change it back to Euros

Example

We Buy We Sell

1.34 1.30

http://www.xe.com/

Currency Conversion Website