Money Exchange Rates and Currency Converting

Every day the U.S. Dollars value goes up or down in value when compared to other countries money systems. The exchange rates of money between currencies of different countries rise and fall depends on several factors; politics, supply and demand of products and services offered by a country compared to other countries and the overall economic health of a country.

Especially since the internet, the world has become a smaller place; communication with other people around the globe has become easier and more convenient. Because of this convenience, it is a natural process that it is even easier to purchase products, hire services and do business with people and companies in countries that are not our own.

If you are in the U.S. it is important to understand the value of the dollar when compared to other currencies when you are purchasing products form other countries like Canada, Great Britain or even Mexico. Likewise, if you are not in the U.S. and are purchasing a product from the U.S. it is important to know how much money in your own currency you are spending on that product or service.

I am using mostly U.S. Dollars as the bases of this lens because most of the visitors here are from the United Sates and also it is because most countries compare the value of their currencies to the U.S. Dollar. However, the formulas in the next paragraphs work for converting any currency into any other currency.

It can be fairly simple to convert the U.S. Dollar into other currencies and vice versa. Here are a couple easy to follow examples and formulas. For our examples, we will assume that at the moment $1 = .53 £.

Let's say that you live in the U.S., on eBay, you find a product that is in the U.K. that is selling for 8.50 £. You need to find out what that is in current U.S. Dollars. Here is the formula to figure out how many dollars it is:
USD/GBP = Percent
1/.53 = 1.89
Percent*GBP = USD
1.89*8.50=$16.07

The formula works the other way as well. If you want to place a bid on that item of $20.00 U.S. Dollars, but you need to enter it in Great Britain Pounds then you would figure it out this way:
GBP/USD=Percent
.53/1=.53
Percent*USD = GBP
.53*20.00=10.6 £

Below are some resources to help you see the value of the U.S. Dollar compared to other countries money.