How the exchange rate affects us. Meet our currency converter

16/01/2025

The exchange rate is the relationship that exists between the value of two different currencies, that is, the value or price of the currency of one country in terms of another currency. The exchange rate is free and fluctuates every day.

Suppose that today the exchange rate of the euro against the US dollar is 1.05 $ / €, this means you can exchange 1 euro for 1.05 dollars. As the value of the euro varies continuously:

• If the exchange rate of the euro against the dollar increases, we say that the euro "appreciates" against the dollar and we can buy more dollars with one euro.
• If its value goes down, we say that the euro "depreciates" against the dollar and we can buy less dollars with one euro.

Therefore, when you travel or live abroad, make purchases or invest in other currencies, the exchange rate plays an important role in your finances. Remember that on our website the currency converter Abre en ventana nuevais at your disposal.

Suppose now that you are going to study in the United States, what should you know?

• First of all, how many euros is a dollar and vice versa. Changes to the euro are published daily by the European Central Bank with the consideration of official changes. You can consult them in the BOE.
• If you have budgeted a sum of money in euros for the trip, remember that the amount available in dollars will vary depending on the exchange rate.
• The same will happen with purchases or other payments, which will be more expensive or cheaper depending on how our currency fluctuates. Also, if you use exchange services when withdrawing money at an ATM, making transfers or paying by card, remember that entities can apply commissions for them.
• Finally, if you are going to change currency, remember that each entity can vary the exchange rate. It's important to compare changes and commissions to get the best deal.

In short, the exchange rate is an important factor to consider when you're in a country with a different currency, so stay informed and plan your finances well. 

“Disclaimer: Please note that this is a translation of the original in Spanish that has been obtained using eTranslation (the machine translation tool provided by the European Commission), with the intention of giving you a basic idea of the content in English until a human translation becomes available. The Banco de España accepts no liability whatsoever in connection with this translation.”