Gone are the days when you need to manually convert one country’s currency to another. There are hundreds of currency exchange calculators online. Most, if not all, are free for use. However, it would be good to know how to convert one currency to another manually. If you need to convert pounds to US dollar, here are the two ways to do it.
Manual conversion
Taking the example of converting pounds to US dollar, you first need to know the exchange rate for the day. You can find this online or through the newspaper’s financial section. Another source of the exchange rate is your local bank. You do have to note that exchange rates may differ depending on the source. Selling and buying rates usually differ between financial institutions. But you at least get a ball park figure using the available exchange rate.
Once you know how much one US dollar is in pounds, you can begin your manual calculation.
Assume that one pound (£) is equivalent to US $1.50. This means that for every one pound, you can buy US $1.50. If you have £100, you can exchange this amount for US $150. Your equation will look like this: £ x exchange rate = US$. Plugging in the numbers you have £100 x 1.50 = £150.
On the other hand, if US $1 buys £0.666 and you want to convert US $ 100 to pounds your equation will look like this: US $ ÷ exchange rate = £. You now have US $100 ÷ 0.666 = £150.
Currency calculator
Having a currency calculator simplifies the whole process. Choose one of the many free currency calculators online. Specify the currency you want to convert, enter the amount to be converted then choose the currency you want to convert to. The exchange rate used in your conversion is the current exchange rate for the day.
If you need to convert pounds to US dollar, the simplest way to do this is to use an online currency exchange calculator. All you need to do is to indicate the two currencies and the amount you want converted. But it is also useful to know how the calculation is done without going online. All you need is a reliable source of exchange rates to begin converting currencies.
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