Posted by forex at 9:56 AM
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1. Look up the value of the currency. You have a few options for obtaining this information. The financial section of any major newspaper (The Chicago Tribune, the New York Times) will be able to provide an accurate to-the-day value of one unit of a nation's currency. If you can't get to a newspaper, an Internet conncetion will also work - you can go to sites like that of the The Wall Street Journal. Make a note of the value.
2. Look up the value of the currency you want to end up with. You can use the same source you did for step one. Make a note of the value.
3. Compare the two values. For the sake of this example, we'll assume that you want to go from American currency to Canadian. The value of the one unit of the Canadian currency is going to be equal to that of one American dollar. So in this specific situation, all you'd have to do is multiply the amount of American currency you have by the value of one Canadian dollar. For example, if you the value of the Canadian dollar was $1.34 compared to the American dollar and you had $10 American dollars, you would multiply 10 by 1.34. In Canadian dollars, your $10 would equal $13.40.
4. Practice converting currencies other than American to get a general understanding for how to do it. To do this easily, you could convert 'Currency A' into American much the same way you did the conversions in step 3, and then convert your new American currency into that of 'Currency B.' Once you've got the hang of these simple equations, you can quickly and easily know the foreign value for your money.