Foreign money and exchange rates
When going abroad you need to change money to the currency of the country you are visiting. It is important to know the exchange rate and amount of commission charged to get the best possible deal.
Exchange rates from £1
The currency of the United Kingdom is the British pound, or pound sterling. When we refer to foreign currency, we mean the money that a different country uses such as baht in Thailand or rupees in India.
Not all currencies have the same value. We use exchange rates to convert from one currency to another.
Exchange rates are published in newspapers and online where the pound is matched against various currencies. This table shows examples of exchange rates, but they change constantly to reflect the current economy.
| Country | Currency | Exchange rate for British pounds |
|---|---|---|
| Denmark | Kroner | 10.38 |
| Japan | Japanese yen | 190.49 |
| South Africa | Rand | 19.33 |
| Switzerland | Swiss franc | 1.46 |
| Eurozone | Euro | 1.39 |
| United States | Dollars | 1.55 |
To convert from British pounds to a foreign currency, you multiply by the exchange rate.
Example
£20 × 1.39 = €27.80.
- Question
Emma is going to South Africa and wants to exchange £250. Based on the table above, how many rand should she get?
The exchange rate for South African rand is 19.33.
250 × 19.33 = 4,832.50 rand.
To convert from a foreign currency to British pounds, you divide by the exchange rate.
Example
€278 ÷ 1.39 = £200.
- Question
Emma returns from South Africa with 85 rand. How much is this worth in British pounds?
85 ÷ 19.33 = 4.397309.
This answer needs to be rounded to two decimal places.
85 rand is worth £4.40.