currency exchange?
kelbel asked:
I am confused with the rates of exchange. I received a 10 yuan from someone and checked on line to see the exchange rate. I continued to see different exchange rates between different countries and the USD. Anyway my question is, if you can get per say 500 of a certain currency for one usd, does that usually mean that you can buy a lot more there for “less” if we were to be talking about its cost in USD?
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I am confused with the rates of exchange. I received a 10 yuan from someone and checked on line to see the exchange rate. I continued to see different exchange rates between different countries and the USD. Anyway my question is, if you can get per say 500 of a certain currency for one usd, does that usually mean that you can buy a lot more there for “less” if we were to be talking about its cost in USD?
January 24th, 2009 at 11:20 am
No. The absolute number of units in one currency vs another currency doesn’t tell you much. The change in the exchange rate can show you more about it’s power compared to another country. You can look up data on purchase power parity to see how currencies compare in purchase power.