Currency exchange

Banks and forex bureau buy and sell currencies of different cuntries at rate different rates according to their values.

To make profit, they buy currencies at a lower value and then sell them at higher values. The difference in the selling and buying value is the banks’ profit.

Currency exchange billing board

Note that:

(i) Converting foreign currency into local currency the customer is selling.

Thereore, local currency obtained = foreign currency x selling rate

For example 1

10 Rwaandese francs will fetch 10 x 4 = 40 Ug. Shs.

Converting local currency into foreign currency the customer is buying foreign currency

The foreign currency = (local currency)/(buying rate)

For example

36500 Uganda shilling will buy = 36500/3650 = 10 US dollar

For revision questions download PDF

currencies- upper primary

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Compiled by Dr. Bbosa Science +256 778 633 682