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Most countries of the world have their own currencies. International trade plus capital flows are facilitated by way of currency alternates. Whenever currencies are exchanged, the amount of one currency (currency A) required to buy a unit of other currency (currency B) is named the exchange rate. The reverse exchange rate may be calculated by way of dividing 1 by the exchange rate of currency A against currency B. The reverse exchange rate will present the quantity of currency B required to acquire a unit of currency A.

Difficulty: Moderately Easy

Directions

1 Identify which currencies you need to convert plus uncover out their trade rates. You can grab the trade rates away from monetary intelligence agencies such seeing that Bloomberg or Reuters.

2 Find out which way you need to transform your currency. The change rates are given in the form of currency Some/currency B proportion, which specifies how much currency B you need to acquire a unit regarding currency A. With instance, EUR/USD of 1.2 website website9 means that is you need 1.2 website website9 cash to buy one euro.

If you want to know the reverse rate, separate 1 by this exchange rate.

3 Convert the currencies. Multiply the exchange rate of the currency in question by the amount you want. For example, if you need to purchase 1 website internet site internet site euros and the EUR/USD trade rate yous 1.2 website website9, you will have to sell 12 website website.9 dollars. This external link was removed for your protection.

References

The Federal Reserve Deposit of New York: Foreign Exchange Blomberg: Benchmark Currency Rates

exchange fluctuations image by Raimundas from Fotolia.com