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
In: Other
It’s exactly what you think. You could buy one of their dollars for $32.50 of your own. Think of foreign currency as trading cards and it might be a bit easier to get used to their value floating about. Just like trading cards their popularity can go up and down, how much people want them changes over time and this affects how much people will pay for it (the “exchange” value). When the value goes down you can buy more of them with your own money and the opposite is true when the price rises. Just like anything else you buy the value can be down to the cents. (Actual official foreign exchange rates are to 4 decimal places… so US Dollars per British Pounds right now are 1.2305 but this is rounded off for you when you exchange currency in a shop / bank / online)
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