Naturally, this will change on a regular basis as currency exchange rates change, but currently 1.00 GBP is equal to 1.58424 USD. Because five pence is a twentieth of a pound (100 pennies in a pound), 1.58424 needs to be divided by 20 to get the value in US currency. Therefore, 1.58424 ÷ 20 = 0.079212, so five pence is worth 0.079212 of a cent (or to round it up, 0.08 of a cent).
Currency exchange rates are the value of the currency of one country compared to the value of the currency of another. This is determined by the supply and demand of a particular currency. This can be brought about by things such as interest rates. For example, if a country has a very high interest rate, foreign savers may wish to save in that particular currency, which would make that currency more valuable.
Conversely, if a country prints a huge amount of paper money, the value of it would diminish because there would be a surfeit of it.
Another contributory factor to the value, or otherwise, of a currency is its buying power. For example, buying an item in America will cost a particular amount of money, but perhaps to would cost more in Europe, or significantly less in some parts of Asia.
All these economic factors contribute to exchange rates on a daily basis making the currencies of particular countries more or less valuable. This makes international trade a variable pursuit, but it is also important to travelers. Exchange rates should be scrutinized before buying the currency of the country that is being visited because it can make a very real difference to how much disposable cash you actually have, which in turn affects your own buying power.
Currency exchange rates are the value of the currency of one country compared to the value of the currency of another. This is determined by the supply and demand of a particular currency. This can be brought about by things such as interest rates. For example, if a country has a very high interest rate, foreign savers may wish to save in that particular currency, which would make that currency more valuable.
Conversely, if a country prints a huge amount of paper money, the value of it would diminish because there would be a surfeit of it.
Another contributory factor to the value, or otherwise, of a currency is its buying power. For example, buying an item in America will cost a particular amount of money, but perhaps to would cost more in Europe, or significantly less in some parts of Asia.
All these economic factors contribute to exchange rates on a daily basis making the currencies of particular countries more or less valuable. This makes international trade a variable pursuit, but it is also important to travelers. Exchange rates should be scrutinized before buying the currency of the country that is being visited because it can make a very real difference to how much disposable cash you actually have, which in turn affects your own buying power.
