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?
Things To Watch Out For
It is very easy to confuse the two relative currencies, their values, and the concepts of appreciation and depreciation. For example, if the exchange rate increases between currency A relative to a unit of currency B, which exchange rate appreciated? If currency A has increased per unit of currency B, then it takes more money of currency A to buy one unit of currency B. As a result, currency B appreciates because a single unit of currency B can now buy more of currency A. For example, if the exchange rate is 
relative to 
and it increases to 
relative to , then the Canadian dollar purchases one penny more. The figure helps you understand the relationships involved and provides a visual reminder of which direction everything is moving.