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What is an International Currency Converter?

Article Details
  • Written By: Felicia Dye
  • Edited By: Heather Bailey
  • Last Modified Date: 11 September 2019
  • Copyright Protected:
    2003-2019
    Conjecture Corporation
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Money is often referred to as currency. There are many different types of money in the world, however, and generally, they are not equal. This means that when a person with one type of money conducts transactions in a territory that uses another form of money, she will need a means to determine the appropriate exchange rate. An international currency converter facilitates this process.

Pula, rands, and dollars are all forms of currency from different countries. If a person leaves Botswana, where pula are used, and travels to South Africa and wants to purchase things, he will need to exchange his money for rands. The currency that he already possesses has a certain value, and the currency that he wants to possess has another value.

Exchange rates refer to the amount of money that should be given or received when currency trades are made. To ensure that the traded amounts are accurate, an international currency converter is often used. For this tool to make an accurate determination, several pieces of information must be known. This includes the value of each currency and the amount of the currency that needs to be traded.

An international currency converter can be found in several forms. Some people have them on their cellular phones. They can be found as small electronic devices that resemble calculators or they can be accessed for free on the Internet. Regardless of the type, they generally work in a similar manner.

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In the aforementioned example, a person wanted to convert pula to rands. In this instance, he would need to decide how many pula he wants to trade. If he decided 100, he would enter that amount in the appropriate space on the international currency converter. Then, he would select the currency type, which is pula.

Next, he would select the type of currency that he wants to receive. The international currency converter should have an area where his choice could either be chosen from a list or typed in. Finally, there should be a command button such as “calculate” or “convert.” Pressing this will almost instantly yield results of how many rands a person will receive for 100 pula at that time.

Exchange rates are constantly in flux. This means an international currency converter is only useful if it contains updated information. Most financial institutions have these tools built in to their systems, which allows money to be converted at an accurate rate for that moment when electronic transactions are made.

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