Introduction to Foreign Exchange Rates By Ben Quick

Financing International Trade Foreign exchange is the buying and selling of the currencies of different nations. The foreign exchange rate is the price of one country’s currency in terms of another country’s currency.

Exchange Rates Exchange rates can tell you the value of one nation’s goods in terms of another nations money. For instance: If the exchange rate between the U.S. and Mexico is $1=10 pesos and in Mexico they sell shirts for 30 pesos, then that shirt would cost $3 in U.S. currency.

Exchange Rate Table USD EUR GBP JPY 1 USD = 1.000 0.763 0.630 81.578

Questions?