Foreign money and exchange rates - WJECExchange rates from foreign currency

Sometimes the exchange rates will be given to reflect what one unit of the foreign currency is worth in British pounds.

One unit of foreign currency could refer to $1 in the USA, €1 in France or ¥1 in Japan.

Example 1

The exchange rate from US dollar to British pound is $1 = £0.64.

As dollars is the single unit:

• multiply to change from US dollar to British pound
• divide to change from British pound to US dollar

This diagram may help you to imagine the conversion more clearly:

Example 2

Calculate the value of $30 in British pounds.

$30 × 0.64 = £19.20.

Example 3

Calculate the value of £57 in US dollars.

£57 ÷ 0.64 = $89.0625.

$89.06 (to two decimal points).