How exactly does currency from another country work?

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Let’s say their dollar=32.50 compared to our U.S. dollar.
That doesn’t mean a dollar literally equals 32 dollars and .50 cents there right?
How exactly does it work?
I want to fully understand it before I go out there and mess everything up.
How do I know how much to pay someone let’s say if they complete a job for me or how do I know exactly what a dollar equals there.

-thank you

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5 Answers

Anonymous 0 Comments

Normally, things will often have *roughly* the same cost between countries with the exchange taken into account, although obviously this differs with specific things.

For example, a dollar is worth about 80 yen (Japanese currency). If you go out for a quick lunchtime meal in Japan, it might cost you 1200 yen. When you do the conversion, that’s about $11, which is a normal amount to pay for lunch. The salaries are often roughly matching too, although obviously this is different in poorer vs richer countries. For example, the average monthly salary in Tokyo is 325,000 yen, which is equivalent to about $3000 US.

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