Currency Exchange Rates
Quick Currency Conversion
What makes currency so interesting?
You might think that currency is simply banknotes and coins of all types that are broken down into several denominations. But it goes a lot further than that.
Currency is of great interest as it is a constantly shifting entity. If you look at the exchange rates between any two currencies on one day, you can virtually guarantee that they will be different the very next day. They even change by the second, as forces and events all around the world influence what goes on in this area.
Currency is extremely important to all our lives, whether we know it or not. In its simplest form we can exchange one currency for another to go on vacation abroad, and in its most complex form it has the power to affect businesses and individuals all around the world.
Currency and business
Currencies have a huge effect on many businesses around the globe – especially if they import or export goods from or to other countries. If the exchange rates between their home currency and the one being used by the other country involved in the transaction are not favorable then the deal may not be a profitable one for the business.
Conversely if market conditions change that same business could make a better profit, simply because the exchange rate has swung back in their favor.
Currency and individuals
You may not think that the topic of currency affects you much as an individual, but you’d be wrong. Currency actually underlines a lot of the news stories you see on television and on the internet every single day, and if you visit any financial news website you will see a section concerning movements in the money markets and the latest statistics that are relevant to the foreign exchange market.
If a particular currency weakens against other major currencies in the world – as was seen recently when the US dollar became weak against currencies like the Euro – then it has the potential to affect the situation experienced in that country. Confidence in the economy falters and inflation can start heading in the one direction no one wants it to go in – and that’s up.
Anyone involved in the foreign exchange market will be even more interested in what’s going on with various currencies and their performance against each other, since this can affect how much profit they make over time. The idea of making money out of the way currencies move up and down in value might seem a little strange to begin with, but there are billions of dollars involved in this market and some people even manage to make a decent living from their foray into this arena.
How currency has changed
While the basic idea behind currency hasn’t changed through the centuries – basically it is a means of exchanging goods for payment – the appearance it has is completely different.
Nowadays we have coins, banknotes and even plastic cards with which we can pay for goods and services, but in times gone by the focus was on more rudimentary items such as knives, shells and even certain food items such as wheat.
There was really no such thing as an exchange rate back in ancient times, and it is actually quite eye opening to compare the world of currency as it once was with what we know today.
For example the Forex market which is worth so much and sees the movement of lots of cash every single day, has only actually been around for a few decades – much less than you might at first think.
The future of currency
Will the currency of tomorrow be a single world currency for everyone? Some people think so, but anyone involved in the foreign exchange market will certainly be hoping it doesn’t happen!
It isn’t likely to happen in our lifetime, but until and unless it does we can continue to look at the world of currency as a whole, and bring you the best reading material possible on all matters to do with money and finance.
Make sure you read through all the sections of this website and explore all the knowledge and facts we have to share with you. We sincerely hope you will share our enthusiasm for currency, and that you will help us to make this website as good as it can possibly be both now and in the future.