Guide to currency converters: direction of exchange rates, quotation calibres and travel budget accounting

Let's see where the exchange rates are going.

The most common error in currency conversion is the reverse direction of the exchange rate. Page Display 1 USD = 7.20 CNY, which means that the amount of $1 can be converted to $7.20; If there's one in there, 100 USDAnd the result is... 720 CNY。 Turn it around. 720 CNY In dollar terms, you have to divide by 7.20, get 100 USD。 The same set of numbers, multiplication or division, depends on whether you enter the currency of the quotation or the base currency.

Online converters, which usually provide intermediate or reference exchange rates, are suitable for estimation and comparison and do not equal the price that is ultimately executed by the bank, the payment platform or the exchange point. Real transactions can involve factors such as purchase price, sales offer, handling fees, differences, CIO exchange rate and settlement date. UseCurrency converterThis is done by using it as a transparent mathematical calculation and then adding the costs of the trading channels to the budget.

How do you understand the exchange rate field?

Base currency and quoted currency

Foreign exchange offers are often denominated in currency, for example USD/CNY = 7.20。 Left USD It's base currency, right CNY The currency of the quotation, which means that the equivalent of US$ 7.20 is in one dollar. (b) If the tool is " from " field to " to " to enter the renminbi in United States dollars, the multiplier is usually applied; When the switch is made, the tool is converted using a penultimate relationship. The figures seen on the web page should not be reproduced only, but should be recorded with the currency code.

Intermediate, purchase and sale prices

The intermediate price is the reference value between the purchase price and the sale price. The bank uses the purchase price when buying your dollar and selling it to you, which is usually more unfavourable to you. The crediting may also be done at a different rate at the liquidation date by Visa, Mastercard or the issuing bank. The tool cannot accurately simulate the final amount of the receipt if it does not provide a channel for the transaction.

Update Time and Time Zone

Exchange rates may also follow the most recent trading day prices for weekends and holidays as markets change. News pages, bank Apps and online tools may be updated at different times, and quotation dates may be used either UTC or local time. For claims and financial transactions, the “exchange rate at the date of the transaction” or “end-of-month rate” must be fixed in accordance with the corporate system and the most favourable figure cannot be selected ex post facto.

Steps to use currency converters

1. OpenCurrency converter, first confirm the source and update time of the exchange rate displayed on the page.
2. Select the currency actually held or paid in the field from the field to the field from the field to the field from which you want to compare. Priority CNY、USD、EUR Wait for ISO code to avoid confusion of the same currency.
3. Enter the amount by filling in a number only, and do not paste the KiloCell separator, currency symbol or text together unless the page explicitly supports it.
4. Reads the results and converts them backwards once. The result is re-exchanged in original currency and the difference is the right direction if it is rounded only in decimal places; If the difference is double or the order of magnitude is abnormal, the order of the currency is checked.
5. The transaction channels are used to add fees and discrepancies. For example, the result of the tool is 720 Dollar, payment platform received 1.5% Fees, budget should be based on 720 × 1.015 or the order of charges specified by the Platform.
6. (c) Record the date, source, handling fees and eventual actual deduction of the exchange rate. The inter-monthly project should not cover historical transactions with today ' s exchange rate.

Travel budget: “exchange rate results” translated into enforceable amounts

The travel budget shall be split first by category. The amounts of accommodation, transportation, catering and entrance tickets are given in foreign currency and are converted into Chinese currency. Assuming that the daily meal is budgeted for 45 EUR6 days, reference rate 1 EUR = 7.85 CNYThe reference cost for meals is 45 × 6 × 7.85 = 2,119.5 Dollar。 The subsequent setting of exchange rate fluctuations and the payment of fees of between 3 and 5 per cent is easier to explain than simply multiplying the total amount by one.

Cash exchange and brush cards are not necessarily the same. Cash exchange may have fixed handling fees and cash prices, and the use of a card may have dynamic currency conversion (DCC) options. When the merchants gave you the choice of “in renminbi”, DCC rates of exchange usually included an additional mark-up; If the bank card supports local currency settlement, the two final amounts are compared. The tool will help you judge whether the quotation is clearly deviating from the reference value, but will not replace the issuing bank clause.

Cross-border shopping and reimbursement

Purchase price 199 USD When subscriptions are made, the RMB cost is estimated using a converter, which is added to the VAT, platform service charges and bank card currency conversion fees, respectively. If the bill is deducted on a monthly basis, the exchange rate will change each month and the amount of the first payment cannot be considered a fixed cost for the entire year. Enterprise procurement should also record the invoiced currency and the recorded exchange rate to avoid inconsistencies between the financial supporting documents and the actual debits.

Staff reimbursement 680 JPY The system provides for the settlement of transport expenses at the current sale price of the bank that swipes the cards. The intermediate price shown in the tool can only be used as a reconciliation range and the reimbursement form should be filled in the actual exchange rate or converted amount in the bank statement. If more than one person travels together, the flat-rate calibre is aggregated, no one can use the cash exchange rate and no one can use the App intermediate price.

The electrician sellers also consider the collection platform when calculating profits. Client payments 1,000 USDPlatforms to collect 2.9% + 0.30 USD, and then press 7.16 It's not easy to get in. 1,000 × 7.16。 The Platform ' s costs should be deducted and then calculated at the exchange rate specified by the Platform, with a separate refund, withholding and withdrawal fee. The currency converter is responsible for the exchange rate portion and the cost rules are to be recognized from the contract or bill.

Error Contrast & Quick Check

The calculation can be performed using the two-step "number and direction" method. When the renminbi is exchanged for the yen, the result is usually much larger than the yuan, since the equivalent of one dollar is in the tens of yen; When the United States dollar is converted to the euro, the result is usually the same level of magnitude as the original amount. The result is then replaced by the original currency, and if the order of the deviation is correct, the error should be mainly due to rounding and the timing of the quotation update.

Exchange rate risk and privacy boundaries

The figures shown in the tool are not investment recommendations and do not guarantee future exchange rates. Enterprises that need to be locked in may use forward, options or natural hedges, but these products are eligible, bonds and compliance requirements and cannot be determined solely by online conversion results. Individual travel may be subject to the “budget + pressure exchange rate” column, for example, the adequacy of cash reserves, estimated at 7.20 and 7.60 respectively.

The amount entered is not generally sensitive in itself, but the risk of disclosure is increased if the customer ' s name, card number, order number and transaction details are posted simultaneously. Priority is given to entering the total amount after dissensitisation in local tools, and complete payment vouchers are not uploaded to an unknown website. The fact that the tool does not keep a record of the transaction does not mean that there are no marks on the device, browser extension or screenshot.

A simple sensitivity table can be established for budgeting: the total cost is calculated by using scenarios 3% higher, 8% higher and 3% lower than the benchmark rate. If the impact of different scenarios on profits or cash flows exceeds acceptable ranges, it will require the early locking of exchange rates, an increase in the price buffer or a change to a more stable way of settling the balance. (a) The tables contain both the “original currency amount” and the “local currency amount amount” and do not cover only converted figures; Refunds, partial shipments and exchange rate movements are subject to retroactive application.

When to use the tools

(b) Use of the main tool when the reference amount for both currencies needs to be quickly compared; If the page provides options for the use of the dedicated financial field or closer to the bank quote, you can view it.Financial currency converters。 Simple multipliers and handling fees are added to the list.Currency CalculatorReview. Do not replace real-time line interfaces with static converters, nor treat them as clearing documents.

The exchange rate table should preferably be fixed in decimal places and negative numbers, with the amount of refunds expressed as negative or separate refunds, and not be removed directly from the original record from income. At the end of the month, the reference results of the tool are compared with a sample of water flow from the bank, and the difference exceeds the pre-set threshold, and the date, currency direction and cost of the transaction is checked instead of the original amount being modified to “conform”.

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