How Foreign Currency Exchange Affect You

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Foreign Currencies Affect Everything

There are many things we go about life living with that we never pay attention to, even though they have a tremendous impact on our lives. One of those is foreign currencies and foreign exchange rates.

Now don't turn that dial just yet, this isn't going to get all technical on you, this article is about understanding the basics of currency rates because they affect many areas of your life, and in some cases: daily decisions, depending on your lifestyle and/or whether you work online or in a business you sell things to others outside your country.

Many times successful vacations or making it in business can depend upon your realizing how foreign currencies and currency exchange rates must be taken into account for when making decisions.

So don't be concerned about his being one of those articles on the forex, or being a forex trader, the global forex, forex markets, or putting a forex account into place. This isn't about forex markets for the purpose of investing, this is understanding that there are foreign currencies, and no matter where you live, if it's a currency outside your country, it's foreign, and that means if you do anything where you must exchange your currency for another, or you do business with anyone outside of your country, it will have an effect on profits or costs, depending on what it is you're doing.

Vacations and foreign currencies

Let's look at something most of us do: travel to a foreign country. If you take a vacation outside your home country, in most cases you'll be required to exchange your currency for the currency of the country you reside in.

So when you make your plans and how much money you're budgeting, you must take into account the approximate currency exchange rate at the time of your vacation; even up to the day you leave.

This is especially true if you're on a fairly tight budget, as foreign exchange rates will eat into your spending money, or in many cases, add unto it, depending on the current strength of a foreign currency.

So you may need to compensate by having more spendable resources, or you may be able to save money because of the strength of the currency of the country you reside in. 

Foreign Currencies

Foreign currencies and doing business

If you do business in any way with people or businesses from a foreign country, you'll encounter currency exchange rates. You can experience a disaster based on this alone if you don't understand the effects of the value of currencies from whatever countries you're doing business in.

As a matter of fact, huge companies in many cases perform the best or worst based on their ability to manage currency fluctuations while doing their currency exchange. 

Online Business and foreign exchange rates

Speaking of managing foreign exchange or currency exchange business, with a Internet business, that can be done in a very efficient and easy manner.

All you have to do in the majority of cases is simply opt out of doing business with someone that may reside in a specific country that can have a very volatile currency because the country itself is very volatile.

What this does is allow you to focus on fairly predictable currencies from more stable nations. 

Don't have to be Forex expert

So as you can see, you don't need to be an expert on forex markets or have a forex strategy, learn the forex or have forex training or take a forex course, in order to understand that currency exchanges and currency exchange rates have a major impact on our lives in many different scenarios, and that's a big first step in managing foreign currencies and currency rates.

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Comments 6 comments

LondonGirl profile image

LondonGirl 7 years ago from London

Interesting hub. We ended up with several thousand shekels (Israeli currency) about 18 months ago, didn't change it into pounds for a while, and found it was worth a lot more than when we got it!


Steve 6 years ago

Thank you for this hub. It seems that more and more of us will have to understand how to make the most out of a money exchange.


Jake Edwards (compare exchange rates advisor) 5 years ago

The problem is, due to the forex market being dynamic in nature, it is impossible to get the best deal, especially when dealing with a merchant bank who only measure rates based on the amount that is displayed on their systems at the time of conversion.

I suppose a lot of clients end up realizing this and look to alternative solutions such as an independent currency broker. Most currency brokers like RationalFX have sales guys working with clients to inform and offer the best deals whilst avoiding any transfer fees in the process, which banks commonly charge.


dynamicsoul profile image

dynamicsoul 5 years ago from united kingdom

Great Hub.. It's a fact that in this day and age you can choose where you want to outsource your business and save money by following exchange rates..


forexpulse profile image

forexpulse 4 years ago from Califorrina

This is such an amazing breakthrough. I can’t image what new breakthroughs will be made because of this!


aaa 3 years ago

hi

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