No matter why you need foreign currency exchange, it is important that you understand it at least on a very basic level. Foreign currency exchange is a complex area and is one which many people spend their lives working in.
Different currencies are used in different countries to buy goods and services, therefore when buying from another country you often need to first buy the foreign currency in order to make the purchase. This goes without saying, but the importance here is that for how much a certain currency is bought or sold affects how powerful it is.
There are many ways to exchange foreign currency, and banks, the Post Office and many other businesses such as specialised foreign money transfer companies offer currency exchange services. The exchange rates each of these may offer varies slightly at any given time (with banks generally offering the poorest exchange rates), but they are all based on the global economy and are always fluctuating. What is known as ‘purchasing power’ is the general indicator of exchange rates. For example, if a product costs $100 in the US and 100 euros in Europe, this would mean you get one dollar for every euro you exchange, although other factors such as tax and interest rates also affect purchasing power.
At Pure FX, we provide a comprehensive foreign money transfer service for business and private clients, and we ensure you get the best deal possible for your transactions, no matter what the current exchange rates are.