Exchange Rates and Currency Exchange
This page discusses how to calculate currency exchange rates and exchange rates. An exchange rate is the value of a state's currency's value compared to another state's. In addition to the rates we examined previously, there are other exchange rates, known as the onshore and offshore rates. An onshore rate favors the national currency traded within its borders. In contrast, an offshore rate is slightly higher for national currency traded outside the state's borders. What is the relationship between restricted currency and the offshore exchange rate?
Paths To Success
Exercise 7.3.1 : Give It Some Thought
In each of the following situations and using the cross-rate table, determine on a strictly numerical basis whether you would have more or fewer units of the target currency than of the original currency. You want to convert:
- \(C$\) into \(US$\)
- \(AU$\) into \(MXN$\)
- \(MXN$\) into \(¥\)
- \(C$\) into \(€\)