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Q:

# What is the formula to convert currency?

A:

To convert currency, obtain the current exchange rate, and divide one by the rate. The resulting number shows the value of one unit of currency in relationship to another.

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1. Obtain the current exchange rate

Find the exchange rate for the currency pair in question. Bloomberg provides a listing of pairings for major currencies.

2. Divide one by the rate

Divide one by the rate obtained in the previous step. The formula used in this step is that the Y-to-X exchange rate is equal to one divided by the X-to-Y exchange rate.

3. Use the answer to determine the new rate

Use the answer from the previous step to understand the value of one unit of the "Y" currency expressed in the "X" currency.

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## Related Questions

• A:

On average in 2014, the Swiss franc held the most comparable value with American currency with an exchange rate of 0.952, states the Internal Revenue Service. Other comparable currencies include the Canadian dollar with an exchange rate of 1.149 and the Australian dollar with an exchange rate of 1.154.

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Travelers can find the international currency transfer rate from a variety of online sources, including CNNMoney, Bank of America and Travelex. These online sources feature a converter calculator that allows users to enter an amount and convert it from one currency to another, according to their websites.

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Many currency brokerage websites have currency converters, like XE.co, Oanda.com, and USForex.com. In addition, financial news outlets like Finance.Yahoo.com and Bloomberg.com will often have a currency converter.