Exchange Rates: If you go abroad on holiday and the country you are visiting uses a different currency from the Pound in the UK, then you will have to buy currency of the country you are going to. If you travel to Spain, then you will need to buy Euros to spend at your destination.

Exchange Rates: The rate of exchange is the amount of Euro you will get in exchange for your pounds. If the exchange rate between the pound and the Euro is £1 = €1.50 and you went to a bank to change £200 into Euro, you would get back €300. At this exchange rate, 1 Euro is worth around 67p. A holiday maker from Spain travelling to the UK and changing 200 Euro to pounds would get £134 in return.

Exchange Rates: Rule 1 To change pounds into another currency, multiply by the rate. E.g. at £1 x 1.5 (exchange rate)= €1.50. £50 changed into Euro would be 50 x 1.50 = ??

Exchange Rates: Rule 1 To change pounds into another currency, multiply by the rate. E.g. at £1 x 1.5 (exchange rate)= €1.50. £50 changed into Euro would be 50 x 1.50 = £75

Exchange Rates: Rule 2 To change a foreign currency back into the pound, divide by the rate. E.g. to change €90 into pounds, divide 90 by 1.5 (exchange rate) = £60. So €45 changed back into pounds would be €45 / 1.5 = ??

Exchange Rates: Rule 2 To change a foreign currency back into the pound, divide by the rate. E.g. to change €90 into pounds, divide 90 by 1.5 (exchange rate) = £60. So €45 changed back into pounds would be €45 / 1.5 = £30