What are Exchange Rates?
The exchange rate (also known as the foreign-exchange rate, forex foreign exchange rates or FX rate), between two currencies specifies how much one currency is worth in terms of the other. For example an exchange rate of 2.5 Aussie Dollars (AUD, $) to the British pound (GBP, £) means that 1 Pound will buy you 2.5 Aussie dollars. What can be confusing is that you may also see the exchange rate expressed as it inverse. In other words you might see 0.4 instead of 2.5. This is just 1 divided by 2.5. To ensure you get a reasonable rate, it is handy to know both when you are dealing with currencies at foreign exchange counters. Exchange rates enable trade between two countries with different currencies, there are (i.e. prices at which currencies and the goods and services of individual currency zones), can be exchanged against each other. Currency exchange rates are constantly changing, meaning you can receive more or less of a foreign currency depending on when you exchange your travel mone
