Exchange rate calculator

Exchange Rates: An Overview

An exchange rate defines how much it costs to exchange one currency for another. Exchange rates fluctuate constantly throughout the week as currencies are actively traded.

This trading pushes the price up and down, similar to the way that prices of other assets such as gold or stocks move up and down.

How to calculate currency value of a country

The official exchange rate of a currency on the foreign exchange market (forex) is also known as the market price (the current price at which a currency can be bought or sold). That exchange rate or price (e.g., for how many U.S.

dollars it takes to buy a Canadian dollar) is different from the exchange rate you may receive from your bank when you exchange currency. It is often a key element of financial trilemmas.

Here’s how exchange rates work, and how to figure out if you are getting a good deal.