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

A bit off-topic, but you likely don’t need cash at all if you’re visiting the UK. I used tap to pay for everything there. Just ensure you’re using a card without a foreign transaction fee, and decline any offer of the payment terminal to process the payment in dollars: your bank will give you a better exchange rate when the payment is processed as GBP by them.

If you did want to get cash, you can get a better exchange rate by just withdrawing GBP from an ATM when you arrive.

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