This is the determination rate within the Foreign exchange market for selling or buying one currency against the other. Currencies are the buying and selling powers of every country and their value is not always equal, they differ from country to country. We can say almost every countries currency may differ when compared to one another due to the country’s economic strength, this may always mean that the poor is the economy of one country then the weaker will its currency be in the market.
- The exchange rate of USD and ZAR on 03 August 2017 was 13.34
- The exchange rate of USD and EUR on 03 August 2017 was 0.84
- This exchange rate were checked using the currency converter
This simple means that 1 USD can be sold for about 13.34 ZAR and also 1 USD can be sold for 0.84 EUR. This formula is always like this 1 USD is equal to 1 USD or 1 Euro equal to 1 Euro, that is why you can never compare one countries currency only, there should be another to compare, remember with this we are not just comparing currencies as a form of payments but currencies as a form of countries economic strength. This is always the rate that will cost you to buy or sell a specific currency.
LIST OF FOREIGN EXCHANGE COMPANIES IN SOUTH AFRICA
USING THE CURRENCY CONVERTER
The easiest way of determining or check the current exchange rate for every currency is through the use of a currency converter. Using a currency converter help everyone determine the exact exchange rate and can be very useful when exchanging such currencies, using a currency converter is more reliable and 100% accurate, currency converters are always updated with accurate information and can help you buy and sell your currencies so easily and can help you understand how much you will be having when migrating.
FOREIGN EXCHANGE RATE TABLE
It is a much designed table that includes all countries’ currencies, all countries’ currencies will be listed on the table and the exchange rate will be visible next to each currency, it will always show you how much it will cost you to buy or sell one currency when compared to the other. Foreign exchange rate table may in most times be in beautiful colors and the data may be changing over time.
FOREIGN EXCHANGE RATE FLUCTUATION
Every countries foreign exchange rate will never remain the same over time; it will always be affected by demand and supply from all market participants, this is not only the determinant of the fluctuation but there are a lot of factors involved like interest rates etc. but the main fact is that the exchange rate of currencies will always fluctuate over time,
so don’t be carried away and think that when you buy and hold currencies for a year and decide to sell them later in a year time that it will remain equal in value, the fact is that you might have generated yourself a lot of profit and sometimes you might have lost some of your money, then during your exchange days this fluctuation might affect you. It is now a financial norm that people of different countries will always exchange one currency against the other currency for different purposes.
By using the Foreign exchange rate data, it will keep you on track to understand other countries economic strengths over time. There are lot of market participants like Banks, investors, traders, financial firms and others who uses the data on a daily bases to take advantage of the market, they usually make exceptional profits with the changes on foreign exchange rates.