Author Archives: Xchange Of America

The Key to Understanding Currency Exchange Rates

Do you need to understand foreign currency exchange rates? If you travel on a regular basis, either for business or for pleasure, it’s important to have at least a basic grasp of how foreign currency works. Unsurprisingly, few of us even understand the meaning of an exchange rate!

Back to Basics with Overseas Currency

In finance, the ‘exchange-rate’ can also be known as the Forex-rate or the FX-rate. In simple terms, exchange rates help us work out the difference between two currencies, one against the other. FX rates are used when companies trade with other countries, when consumers purchase goods from overseas, and when holiday makers want to visit other countries. The ‘spot’ exchange rate is known as the most current, as FX rates will fluctuate from day to day, hour to hour, and sometimes minute to minute. Although the differences are always minor, when you exchange a large amount of cash, it can add up.

Over time, a better understanding of currency in other countries can help you save money. The foreign exchange market is one of the largest in the entire world and roughly 3.2 trillion US dollars change hands across the world on a daily basis.

Exchange Rates and Quotations

Exchange rates can come in a direct quotation, indirect quotation or a cross exchange-rate

•Direct quotations will take the price of each foreign currency unit, expressing it in terms of the home currency. e.g. €1 = 87p
•Indirect quotations are a product of direct exchange rates, so each home currency unit is expressed in the foreign unit. e.g. £1 = €1.23
•Cross exchange rates deliver the value of one foreign unit within another, so this does not include home currency. €1 = $1.29

Is It Important to Understand the Market?

Nothing ever stays the same in the foreign-exchange market, and market based rates will change with demand, availability and supply. For instance, when demand is high, this can increase exchange rates or increase the speculative demand for money. This all affects the end user – the consumer, the business, the holiday maker and the shopper. Whether you use overseas transactions through your bank or you are a keen traveller, understanding exchange rates and the money market can help you cut back on unnecessary spending.

You do not need to undertand the market. The market is always changing and there is nothing you or we can do about it. What we can do is try and make all this as simple as we can. Each currency supplier sets their own price that they want to sell you any particular currency. They call this the exchange rate but in truth it is just an offer to sell you currency you want to buy. Suppliers either set a really competitive price to attract more sales or a poor price to make more money per order. Every business has it’s own overheads and the expenses and this means that some of the smaller and online suppliers can afford to offer far better deals than some of the international suppliers.

Have a look at our comparison tables and have an open mind. Almost all the providers have reviews left by real customers. Have a read and make up your own mind.

Top Travel Money Advice: Your Options for Carrying Foreign Currency Abroad

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Many people leave buying their money until the last minute. There is no reason not to but you will not get particularly good exchange rates if you leave it until you get to the airport or having to get your money on the high street. The most cost effective ways to get foreign currency will depend on your personal circumstances.
You have the five options detailed below but the key to getting the most out of your travel money is to do plan a little ahead and be organised. Just like everything else foreign currency and exchange rates up up and down in price in response to market competition (or they get worst just when you need to buy your money and they get better the day after you have bought it) so you can shop around for the best deals.

Your Currency Exchange Options

Buying currency – The worst rates are with either on with the high street banks or when buying on the plane. The advantage offered by the bank is that you can walk in off the street and buy some of the most common currencies over the counter their and then. On the plane they will have the right currency for your destination. You can still buy currency on the high street but get better rates by being more organised. The Post Office offers two rates, they have an ‘in store’ rate and an online rate.

The online is much better and you can order online but still pick up your cash at your local branch. Marks & Spencers offer the same rate online as they do in store so you can get a decent rate their but if you have to make a special trip then the cost in petrol could easily wipe out the savings. The best rates are available from the home delivery services. You will need to leave yourself at least two working days to use one of these but that is the same amount of time that the banks and post office will need to order in any currencies they do not have in stock. The currency is then be delivered to you by special delivery and you need to sign for it. The savings can be as much as 20% over the high street providers and normally over 10%. Delivery is normally free if you are spending more than £450 to £500.

There is one note of caution you should be aware of and that is that there is at least one online provider (not on our site) that offers really good rates but during the ordering process asks you to gamble with your money. They ask you to accept the rate they are offering now or to accept the rate at the time when they receive your payment. The suggestion is that the rate will improve over night. If your holiday money is money you can afford to lose then you may get a half a percent more as rates may go up as well as down.

Travellers’ Cheques – this has always been considered one of the safest and easiest ways to carry money abroad but today’s choices in credit cards, online foreign exchange and cash withdrawals are giving us more options. Some holidaymakers use cheques in conjunction with other forms of exchange. Travellers’ cheques are very safe to carry, but it can be hard finding a way to cash them if you are in a remote place. There are also a few associated scams relating to fake cheques that you should be aware of.

Pre paid currency cards – These are the traveller’s cheques for the 21st century but wth chip and pin security. As ATMs (cash machines) are so common now a pre paid currency card is a very easy alternative. You transfer money on to the card either before you leave or by using your online banking at any time. You can have multiple cards on the same account so that you can all spend from the same pot of money or a spare card can be left in the hotel safe should you lose a card or have it stolen then you can clear out your account before the thieves do. These cards are not connected to your bank account so that even if a card is stolen they do not get access to your bank. Anyone can pay money on to a card so should a teenage son or daughter find themselves stranded you can pay money on to their card and they can draw it out as cash or buy things using the card like a debit card here in the UK. The only thing to be wary of is that some cards have a monthly or annual fee and this can eat into your money even if you are not using it. These cards are to be avoided.

Cash withdrawals abroad – this can be very expensive if you are withdrawing from your credit card, so it is best to use your debit account if possible. Look out for hidden charges. There are two notes of caution. Firstly ATM machines are the favourite haunt of muggers and bag snatchers. You should try and use ATM machines where you go inside an atrium or inside the bank. Secondly it is possible for your card to be cloned anywhere even here in the UK so there is no reason to think that while you are abroad in a country where you probably do not speak the language your card will be any safer. If you standard debit card is cloned then the thieves have access to your entire bank account.

Credit cards – everyone should know that credit card companies charge different interest rates for different types of transaction and that the way that your balance is paid off. Cash advances by credit card is the most expensive kind of transaction and the last to be paid off if you do not clear your balance in full at the end of the month.

Know the Rules of Travel Money & Currency Exchange

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Millions of Americans travel overseas for business or pleasure every year. Buying your travel money can often seem to consist simply of ensuring you get the best exchange rate. However, it is just as important to familiarise yourself with any rules relating to currency exchange, taking money into or taking money out of a country.

This applies to many countries and currencies. We have used the South African Rand as an example because it was a significant issue just a couple of years ago. There are many countries that try and stop money leaving. Some of the restrictions are lax and rarely enforced but others are quite strict. Now on every currency page we have an easy to read summary of key facts and information on this sort of limit and other important rules.

Because the vast majority of US travellers are visiting Europe, Canda or Mexico, they will not come across any restrictions on travel money. However, as a recent poll concerning South Africa showed, this is not always the case.

Some or All of your Travel Money could be confiscated

This could have affected thousands of people who visited South Africa for the 2010 World Cup, but research showed that 26% (more than 1 in 4) people did not know that the South Africa sets a limit of 5,000 South African Rand, equivalent to around £403 in cash coming in or out of the country. This means that many UK football fans faced having any excess cash confiscated when they went through South African customs.

At the time some 36%(just over a third) of respondents to the poll said that they were planning to take more than £450 worth of South African Rand with them, with the average sum being around £665 worth. One in five said that they would be taking over £1,000 worth of Rand and 6% (about 1 in 20) were planning to take more than £2,000 worth, far more travel money than they were likely to need, even if allowed to bring it into South Africa at all.

How to avoid the limits

There are ways to avoid such limits, such as pre-paid currency cards, that act just like a debit card and can be ‘charged up’ with up to £7,000. These cards can be currency specific so you put Pounds on the card and it shows as Euros or US Dollars or the cards are multi currency and you can use the card to pay in a whole range of currencies. Because no physical money ever has to change hands the card providers can offer some really competitive rates.

If there are any specific questions you have about taking money into or out of a country then please ask and we will try and answer your questions.

Keep an Eye on Currency Exchange Rates

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Planning a romantic getaway? Your honeymoon, perhaps? Or a skiing holiday for the whole family? Whether you are travelling for business or for pleasure, keeping an eye on foreign currency can help you save money that could go towards something much more memorable and enjoyable.

Staying in the loop with foreign currency exchange rates is essential if you are a regular jet-setter. If you spend three days a week working in your Berlin head-office, or you visit a loved one in who’s based out ion Singapore three times a year, it is even more important to make savings wherever you can.

The Credit Crunch and Currency Exchange

Rates have been affected by the global recession, just like everything else. The UK was thwarted by the credit crunch and there was no help for the plunging pound. So checking foreign exchange rates before you make your travel plans is something that you should think about.

So how is the conversion rate calculated? In percentages, a Canadian dollar might be worth 85% of the American dollar – so this would work out at 85 cents. In currency, you would get 85 cents for every Canadian dollar you hand over. But the ever fluctuating foreign exchange rates could mean that you are getting a pound to 2.5 US dollars one day, and a pound to only 2 US dollars the next.

Ever changing market conditions dictate the variations in foreign exchange rates, so it is always an idea to research the last two weeks of conversions, and maybe even take a look into the history of the conversion.
The Difference between ‘Floating’ and ‘Pegged’

A currency will either be free-floating or pegged. The difference between the two is very simple. In the 1980’s the Hong Kong dollar was pegged relative to the US dollar – this meant that there was a set percentage in conversion. A free floating currency is free to fluctuate with the changing market conditions in relation with other currencies.

Floating currencies can make a huge difference to your expenditure. Being aware of what’s happening with foreign exchange rates is highly beneficial to the traveller and will increase spending power when the variation works in favour of their finances.

Holiday Planning and the Best Foreign Currency Exchange Rates

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The World Wide Web has grown so much in recent years, and it has shaped the way that consumers do things all over the world. From the way we bid for second hand designer jewellery, the way to order our weekly groceries, to the way we look for a new car or home, the net is the first place we look. If you want to plan an exciting itinerary for your next holiday and you want the best foreign exchange rates, you will find everything you need on the internet.

As consumers turn to the web for everything that they could possibly need, competition has become tense with so many travel agents and hotels looking for that competitive edge – and when they don’t have any specialist Unique Selling Points like the incredible Mandarin Oriental in Bangkok, or the famous Grand Hotel in Oslo, it’s all about price wars.

With a growing number of websites offering last minute deals on flights and accommodation, travel agent package deals are seeing the biggest adversary yet. For the holiday maker, this means amazing deals, amazing prices and the best foreign exchange rates.

The Best Foreign Exchange Rates and the Best Planning

If you’re a get-up-and-go tourist, a plan of what you are going to do each day is going to save you a lot of wasted time. Instead of flicking through the hotel brochures for all the nearest tourist attractions, planning ahead can save you valuable vacation time and money. If you research local restaurants and attractions, you will also be able to budget. Getting the best foreign currency exchange rates and making a well thought-out agenda can be done online, the one place where you can find everything you need in one place.

The Best Foreign Exchange Rates and the Best Planning

If you are looking for the best foreign exchange rates for your holiday, there are various places that you could start your search. But the web is the ultimate resource for all your financial requirements. With comparison platforms, forums and reviews, the web can provide us with knowledge and the ability to seek out the best deals for foreign currency.

Inflation and Currency Exchange Rates Today

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Back in April 2009, Britain’s public deficit reached an unspeakable high. It was the highest since records began. In December 2009, inflation soared to a record amount. Now inflation has risen above the 2 percent target of the Bank of England and we are expecting to adverse changes to happen to our exchange rates. Today, Bank of England governor expresses his deep concerns about where this will lead.

How Inflation Will Affect Currency Exchange Rates

Today, the recession is over. But the worst is not. Because now the entire country has been left with a bad taste in our mouths – we have a huge public deficit which rises far above the debt of all UN countries put together and is the highest since paper records started. We’ve faced the threat of losing our borrowing status, having been downgraded from ‘stable’ to ‘unstable’, and now we have inflation to deal with. There is no doubt that this will have an adverse effect of exchange rates. Today, we deal the recession aftermath.

Inflation is a vicious cycle which started from increasing interest rates and long-term borrowing. These methods of money-raising led to the direct causes of inflation – increased prices and increased import prices due to devaluation. In turn, percent mark-ups and profits need to match up to increasing prices, therefore higher wages and salaries are demanded. And so the cycle begins. So how will this affect exchange rates today?

The Pound and Exchange Rates

Today our prices have increased so our exports are more expensive. As this persists and we do less trade with other countries, we devalue our currency. But the Liberal Democrat Treasury spokesman, Vince Cable assured the country that this is a ‘temporary spike’ in our economy and soon inflation will drop. According to Vince Cable, it is expected to drop very quickly so it is very unlikely of damage to our future exchange rates. Today in Britain, recovery is still fragile, but there is progress.

Very recently, one of the most accurate currencies, as reported by the Guardian, was the British pound. It gained good ground after putting monetary-stimulus measures on hold and the quantitative easing programme caused the British pound to rise by 0.8%, while the Euro slipped 0.7%.

Draw Profits from Euro Currency Exchange

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It’s true. Individuals enterprising enough can derive handsome profits if they purposively buy foreign currency online and sell at favorable returns later. The trick here is to have a solid grounding on what makes the foreign exchange market tick. It won’t take the mind of a rocket scientist to discover how to generate profits from money exchange.

As in any market, gains can be achieved with some simple understanding of the law of supply and demand. Buy low and sell high is the elementary dictum for astute businessmen, and this principle applies too in money trading. In short, those who want to draw benefits, for instance, in euro currency exchange, will need to have an accurate reading of the conditions in the European market at large and how it is affected by other international developments.

To a great extent, the mechanisms that govern the Euro currency exchange market are pretty much the same as those prevailing in the capital and commodities markets. In fact, the fluctuations of currency rates are more often than not tied to the ups and downs of prices of equities in various world bourses and the changes in commodity prices, particularly in the futures market. Given this situation, currency trader wannabes should equip themselves with the necessary tools by which to keep abreast of developments not only those happening in the stock trading floors but also in the commodity exchanges.

Besides monitoring these markets, it also pays to be constantly abreast of international news events, especially during periods of volatility in the various world markets. Political decisions, corporate results reporting, and even major weather disturbances can have a palpable impact on currency exchange rates as well as stock and commodity prices. For this reason, a link to a reliable online business network should be a basic tool for those aspiring to pursue the potential growth from money exchange.

Those who possess such a tool already enjoy a head start from the rest of the pack. More often than not, there is no room for guess work in order to achieve fruitful results from money trading. Information derived should not only be reliable but also timely, a leverage that is best obtained via trusted Internet resources. This is especially important during uncertain economic periods when currencies can fluctuate within a wide band and at unpredictable periods of time. Real-time decisions, in this case, would be called for and having the right inputs can spell either loss or profit.

Easy Tool to Calculate Canadian Dollars Exchange Rates

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Finding out currency values has now become exceedingly simple, so much unlike during pre-Internet days. Then, major newspapers and banks were the only usual sources of rates for those who need to know different levels of foreign currency exchange. For people engaged in businesses that require regular conversion of one currency to another involving, for instance, a Canadian dollars exchange to Mexican peso or Iraqi dinar, the process can be time-consuming.

Thanks to the Internet and online tools developed along with it, determining different currency values has now become more convenient. This has been made possible mainly through exchange rate calculators, besides the tables of values for different currencies which are typically carried too by business-oriented websites. Oftentimes, only major world currencies are included in these tables, so an online tool to calculate a currency’s rate against another is indeed quite useful.

One great feature of these calculators is that users have the flexibility to input the two currencies they want converted to values in relation to one another. The operation is automatic, as this device come in a programmed graphical user interface; simply, these tools are classified as “widgets.” Unlike in ordinary calculators, most online conversion tools today don’t require an input of exchange rate value and performing a mathematical operation. All that one needs to do is input the amount of the currency to be exchanged or converted.

Generally, there are two types of exchange rate calculators which can be found online. The older version is static, wherein the user will have to input the second currency which needs to be converted into a currency already fixed or programmed into the widget; the conversion rate between the two will have to be inputted as well. Such an operation would just be like using a standard calculator and leaves the user with task of looking up the rate of exchange between the currencies up for computation.

The newer, universal currency exchange calculator is much better conversion tool and is more common now. Here, the user inputs the two currencies for rate conversion, using a pair drop-down menus in the widget containing options on the base and end currencies. With the appropriate choices done, the amount of currency to be converted is indicated in the box supplied at the bottom of the widget. A click on the “convert” button will automatically indicate the converted amount. These universal converters are linked to real-time data providers on exchange rates, and hence, there is no need to input the prevailing currency values.

Foreign Currency Exchange Info for World Travelers

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Financial and money considerations are necessary adjuncts to international travel, since significant amount of funds will always be involved. These money matters are necessarily top-of-mind for everyone venturing abroad, whether you are a first-time traveler or already well-traveled individual.

First-timers, of course, would have to take that initial step in understanding foreign currency exchange, in addition to acquiring a broad knowledge of the place of visit, including its people’s culture, the climate, and even geographical features. All of the information travelers can conceivably need, thanks to the Internet and its many resources, are now easily accessible.

Even the complexities surrounding subjects as specific as pesos currency exchange can be unraveled with some online research. Browsing websites will broaden one’s knowledge about currencies in particular places of visit, an important step preparing for a foreign travel. For example, you will be at an advantage to know the different money denominations in the country you are visiting.

After exchanging into the local currency, you may be surprised of the volume of bills that you will have. In many instances, particularly in developing countries like Vietnam, you will get an amount worth in millions of the local currency. That millionaire feeling is what you’ll get if you’re changing from hard currencies or currencies much stronger than that the local counterpart.

Familiarization with the various denominations of the local money, therefore, can help tremendously in a smooth stay in a foreign country. You can be easily confused without being familiar in the currency you are holding. You may not be able to tell at a glance their value, unfamiliar as you are with its text or features. Recognizing counterfeits or bogus bills is also an issue. So you really need to be familiar with the local currency in your travel destination.

Visiting online currency exchange providers can be an eye-opener on the features of authentic currencies. Check out those portals which provide visuals on what marks to look for to determine which bills are faked. Also, be careful of some money bills in your places of visit which may have already been demonetized. Browsing through blog items and news developments on foreign exchange will help in this regard.

Likewise, such information conduits will be helpful for gaining insights on current rates and when the best values can be obtained. Usually, currency exchange is less favorable during peak the tourist season in popular travel destinations. Steer away from these period and change currency early enough to get the most out of your travel abroad.

Forex Calculator Tools Draw Website Traffic

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Website developers, particularly those designing portals for business-related online resources, will need to install a facility on foreign currency exchange. This modality is an avenue by which to generate web traffic and, at the end of the day, monetize such visitor inflow in terms of advertising revenue.

The need for such a mechanism cannot be overemphasized. Business has increasingly become global, and foreign exchange transactions happen twenty-four hours a day, Monday to Friday. These money changing deals span across the globe starting from trades in the foreign exchange market in Auckland, New Zealand up to money-changing transactions New York City, USA, every trading day of the week. In-between, the currency exchange rates can fluctuate in trading activities at other world financial centers, such as those in London, Frankfurt, Sydney, Tokyo, and Beijing. Therefore, it comes as a necessity for a business-oriented website to have an instantaneous reading of the money exchange values as a day progresses in order to capture information vital for those wanting to buy euros online, for instance.

When Internet was still in its early years of development, website designers find it quite difficult and expensive to access reliable foreign exchange calculator mechanisms. Enterprising individuals who had an early grip on developing these tools naturally would want to derive benefit from their pioneering efforts to churn out instant readings of money exchange values at any given time in any given location.

However, the tight competition and more advanced IT systems in more recent years combined to change the complexion of the ball game in money-exchange monitoring. Online links with money traders have become more advanced and have grown much more efficient such that linkages began to be more readily accessible. In the interest of public service and business expansion, money traders around the world have installed their own mechanisms to track currency exchange movements in their respective territories. Information technology wizardry too stepped in, and more economical systems were devised to gather these data and make them available online instantaneously.

For this reason, it is now possible to link up with portals providing free currency exchange converters. Those that are ideal to have are, of course, systems with no accompanying online advertisements. As any web page developer would know, a clutter of ads can be a potential source of irritation to visitors. Optimum value can be derived in an online facility which is eye-friendly to those who access the page. This feature comes as an invitation for those browsing the website to stay longer, a situation creating the chance to generate business follow-through from the visit.