how is an exchange rate calculated? And what rate would be best for a currency order?

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Hi, for context, I’ll be in the UK in a couple of months and I need to order some GBP before I leave. The exchange rate right now is 1.2787 GBP/USD but I don’t understand what that means exactly. Does that mean the GBP is worth more? This rate seems higher than normal, is this a good time to exchange? Or do I have it opposite and I should wait?

In: Economics

6 Answers

Anonymous 0 Comments

It means that 1gbp will get you 1.28 usd.

It doesn’t really mean that gbp is worth more. If a burger costs 1.28usd in America and 1 pound in UK. It’s effectively the same price

I wouldn’t really bother waiting for a better price to exchange. Since it could get more expensive and at most you are only saving maybe $0.1/pound (depending how much you exchange ofc)

But if you do want to save them place an order in the bank and wait to see if they sell at that price

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