You exchange your $20 USD and receive $404.04 MXN. If you’ve already converted your money and want to learn the exchange rate after the fact, find the exchange rate by dividing the starting amount for your original currency by your ending amount for the new currency. Divide 20 by the exchange rate of 0.0495 and you’d get $404.04 MXN. Say you want to exchange $20 USD for Mexican pesos. Assume you learn the exchange rate on this particular day is 0.0495. You want to convert your American dollars to Mexican pesos. The result will be the value of your money in the new currency.

To calculate this by hand, you can divide the starting amount for your original currency by the current exchange rate for converting it into your desired currency. Our currency conversion calculator uses the current exchange rate to determine how much your money is worth in a different currency. One way is to use a currency conversion calculator. Currency Conversion Fees: What’s the Difference? Just make sure you fully understand conversion rates and fees before finalizing the transaction. Since the average transaction cost for international transfers is around 7%, these options may be cheaper. Xoom (owned by PayPal) charges $5 per transaction, and transactions via WorldRemit start at $2.99. PayPal charges 4% to convert payments on top of the exchange rate. But keep in mind that this ease can come at a premium. It’s easier than ever to send money to friends and family internationally, thanks to online tools.Īpps like WorldRemit and Xoom allow you to send money to people internationally, as does PayPal. dollars to Euros, you may want to check values during that overlap period. and 12 p.m., for example, and currency values can fluctuate a lot during that window. United States and London currency trading overlaps between 8 a.m. It may also be worth checking currency values during popular currency trading periods. If you’re not in a rush to exchange your currency, check the conversion value on a few different occasions before completing the transaction-you may be able to make your dollar (in whichever currency) go further. Many factors can impact the value of the currency you’re planning to send or exchange, from economic events to the time of day. Read more: 6 Tips To Exchange Currency Without Paying Huge Fees When Is the Best Time to Exchange Money? Once your transfer is complete, you can withdraw local currency at an ATM. If you have a bank account in another country, you can also use an app like Wise to transfer money to yourself for a fee of a few dollars per transaction. If you must use cash, make an international withdrawal from an ATM. Instead, use a debit or credit card with zero foreign transaction fees and select local currency at the register (if you’re given the option).

If you plan to exchange money for personal use, expert travelers will tell you to skip the currency exchange kiosk at the airport-they charge some of the highest fees and often have the worst exchange rates. It’s not as simple as trading one American dollar for its equivalent in Mexican pesos-the current value of each form of currency on the fluctuating foreign exchange market must also be considered. In addition, the value of your currency on the foreign exchange market can influence the value of your money once it’s converted to a new currency. Currency exchange companies make money by charging fees for the convenience of converting your cash. Via Xe's Website Live Exchange Rates How Does Currency Exchange Work?Īt a currency exchange, you can convert your cash into money you can use in a different country or region.Ĭurrency exchanges are businesses that trade various currencies.

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