Exchange Rates and Currency Exchange
This page discusses how to calculate currency exchange rates and exchange rates. An exchange rate is the value of a state's currency's value compared to another state's. In addition to the rates we examined previously, there are other exchange rates, known as the onshore and offshore rates. An onshore rate favors the national currency traded within its borders. In contrast, an offshore rate is slightly higher for national currency traded outside the state's borders. What is the relationship between restricted currency and the offshore exchange rate?
Paths To Success
Let the buyer beware when it comes to international transactions. If you have ever purchased and returned an item to an international seller, you may have noticed that you did not receive all of your money back. For most consumers, international purchases
are made via credit cards. What most consumers do not know is that the credit card companies do in fact use buy and sell rates that typically charge 2.5% of the exchange rate when both buying and selling.
For example, if you purchase a 
item at the rates listed in the cross-rate table, your credit card is charged 
. If you return an item you do not want, your credit card is refunded 
. In other words, you are out 
! This amount represents your credit card company's charge for the currency conversion – a whopping 4.9% of your purchase price!