Understanding Currency Exchange Rates: A Traveler’s Guide
Ordering foreign currency is easy with OnlineFX.When planning your trip abroad, understanding currency exchange rates is crucial and the first step to buying foreign currency. The exchange rate determines how much of the foreign currency you’ll get for your money, which can significantly impact your travel budget.
A question we often receive is, "Why do the rates you see online differ from what you get at a currency exchange? We'll answer that and more. Be sure to reserve foreign currency online to save time on your branch pick-up or use CXI's OnlineFX Home Delivery to order foreign currency whenever, wherever.
Why Are Exchange Rates Different at CXI than at Banks, Airports, and Online Platforms?
The rates you see online are called interbank rates, a credit-approved system where banks trade based on the credit relationship they share with each other. These rates are not available on the open market.
When you exchange money at an airport or bank, you often incur additional costs that you might avoid by using a company like CXI that specializes in exchanging foreign currency. Understanding this difference is the first step to getting the best deal on your currency exchange. CXI can provide more favorable pricing because we recycle foreign currency purchases from inbound international travelers for sale to outbound travelers.
Inverse Rates Explained: Making Sense of Currency Conversions
Exchange rates are like the price tags for money from different countries. They tell you how much of one currency you can get with another. The two currencies involved in the exchange are called currency pairs.
The exchange rate of a currency pair helps you understand how much of your currency you need to get a specific amount of foreign currency. CXI’s exchange rates are typically quoted in the foreign currency to USD or how much USD you’ll receive for 1 unit of the foreign currency.
Inverse rates are used to show the reciprocal of exchange rates. The inverse rate flips the currency pair’s exchange rate direction. Sometimes the inverse rate is easier to understand.
If you find it easier to read, ask our teller what the inverse rate is so that you can get a better understanding of how much of the foreign currency you’ll receive for 1 USD. Here’s what you get for 100 USD with some popular currencies:
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European euro (EUR): If the exchange rate is 1.09739 for EUR, for every euro you exchange, you’ll get approximately 1.09 US dollars. Using the inverse rate of 0.91124, for 100 USD dollars, you’ll then receive 91 euros.
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Mexican peso (MXN): If the exchange rate is 0.0521232 MXN, for each peso you exchange, you’ll get approximately 0.05 dollars. Using the inverse rate of 19.1853, for 100 USD you will then receive 1919 pesos.
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Japanese yen (JPY): If the exchange rate is 0.00674057 JPY, for each yen you’ll get approximately 0.0067 yen. Using the inverse rate of 148.34, for 100 USD you’ll then receive 14834 yen.
Disclaimer: The exchange rates provided are for demonstrative purposes only and do not reflect our current rates
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Get the Best Rates: Our Rate Matching Process
This Best Rate Guarantee means CXI's company-owned location will match or beat the exchange rate given by any local bank or airport for the same product and service on the same day and time of the exchange.
If you find a better rate within the same city and on the same day as the CXI branch you plan to exchange with, notify the CXI branch. Our branch will confirm that the rate you present is for the same amount and currency as you plan to exchange with CXI. Once confirmed with the bank or airport, CXI will match or beat the given rate.
This way you know you are always getting great exchange value along with the added convenience of seven days a week service.
DON'T MISS OUT ON THE BEST RATE
Why Opting Out of Currency Price Protection is Costing You?
No longer will you need to fear leftover foreign currency. Protect your currency by adding this to your next transaction.
Currency Price Protection helps give you:
- Peace of Mind - Freedom and flexibility to exchange enough cash to safely cover your entire trip.
- Save More - Get the ultimate buy-back rate and no buy-back fee.
- Convenience - Simply bring back your receipt or reference number to redeem your special rate Secure the ultimate buyback when you buy foreign currency from CXI. If you opt-out, you’re leaving money on the table. This gets you more U.S. dollars than the standard buyback rate.
Currency Exchange International (CXI) is a leading provider of foreign currency exchange services in North America for financial institutions, corporations, and travelers. Products and services for international travelers include access to buy and sell more than 80 foreign currencies, gold bullion coins and bars. For financial institutions, our services include the exchange of foreign currencies, international wire transfers, purchase and sale of foreign bank drafts, international traveler’s cheques, and foreign cheque clearing through the use of CXI’s innovative CEIFX web-based FX software www.ceifx.com
