Currency exchange rates are an important monetary unity of measure that indicates the relative value of one currency against another. Typically, world currency exchange rates are quoted on the basis of a base rate. For example, one unit of the Australian dollar may be worth 91 cents expressed in US dollar terms. These rates are offered by international currency conversion brokers or money converters and can vary depending on where you attempt to change your money. The current currency exchange rate offered reflects market forces of supply and demand as determined by the fundamental factors that influence the market. Foreign currency trading takes places in what is essentially an over the counter market where brokers and dealers negotiate with each other. There is no central exchange per se and most of the trading takes place on the interbank market via the large international banks that quote prices on the basis of bid/ask spreads. The prices offered for retail transactions do not necessarily reflects these spreads. Retail customers are subject to bank mark ups. If you have ever tried to conduct money currency exchange you would notice that currency exchange rates can vary between exchangers. Usually, you get better rates at the banks themselves as the rates charged by money converters and exchange booths such as American Express reflect the base rates and any markup the provider is adding to these rates
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Excellent post, I think it will be helpful for all those who really need to know compare currency rates.