Currency Converter

Exchange rates represent the value of one currency relative to another. They fluctuate based on supply and demand, economic conditions, interest rates, and political stability. A rate of 1 USD = 0.92 EUR means one US dollar can be exchanged for 0.92 euros.

Common fees include: exchange rate markup (1-3% above mid-market rate), flat transaction fees ($3-15), foreign transaction fees (1-3% on cards), and ATM fees ($3-5). Banks typically charge 2-5% total, while currency exchange services may charge 5-10%.

The mid-market rate (also called interbank rate) is the midpoint between buy and sell prices on the global currency market. It's the "real" exchange rate without markup. Services like Wise and some banks offer rates close to mid-market.

Currency rates fluctuate constantly. Best practices: exchange major currencies during business hours when liquidity is high, avoid airport/hotel exchanges (highest fees), order foreign currency from your bank in advance, and use credit cards with no foreign transaction fees when possible.

Credit cards with no foreign transaction fees are often best - you get close to mid-market rates and have fraud protection. Carry some local cash for small purchases and places that don't accept cards. Avoid dynamic currency conversion (DCC) - always pay in local currency.