Currency conversion - what's that?

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The financial news can often find the term "currency conversion".But not everyone knows the meaning of this phrase.

In general terms, currency exchange - an exchange of one currency against the currencies of other countries.It can be carried out within the country and abroad.

Types convertibility

Sometimes freely convertible, partially convertible and nonconvertible currency.

freely convertible - the currency to be exchanged anywhere in the world.Such currencies in the world a little bit.It's American and Canadian Dollar, Euro, Yen and others.Freely convertible currency is a big advantage for foreign economic activity of the state.

partially convertible - a currency that is not exchanged in all the states.Thus, the Russian ruble is a partially convertible currency.

non-convertible currencies - is the currency of the state that changes to foreign currency only through or with the permission of the central bank.

In addition, conversion can be external and internal, of the current, capital and so on.

external conversion - is the possibility of foreign exchange by non-residents, and the inner - the same thing, only on residents.

advantages of freely convertible currency

If the state is the currency freely convertible, it speaks of a developed state of the economy of the state.Conversion of foreign exchange market participants suggests that they trust her.And that is why the citizens of the state with a freely convertible currency of a sufficiently high standard of living.

Russia is also seeking to make its currency convertible, at least for transactions between States buys from RF anything were in rubles, rather than dollars or euros.Thus, it will boost the economy and raise the level of the ruble to a qualitatively new stage of development.In addition, the status of the Russian currency freely convertible, too, will grow.

Currency Exchange - is the cash and non-cash transactions

When cash transaction is expected in the bank currency conversion, exchange or through an ATM withdrawing money from the bank card.Cash conversion is very popular.

Meanwhile cashless currency conversion is often a much better deal in cash.This operation is performed, for example, electronic purses, electronic payment systems, online personal account online bank where the account is open and, of course, with the help of bank cards.

Currency Exchange - is a type of transfer of funds between accounts.Money thus transferred from one bank account to another, usually in electronic form.To perform this type of operation will require a smaller commission than the cash conversion, and in some systems, the Commission will not be levied at all.

How does currency conversion online

tool for online currency exchange are the so-called currency converters and currency calculator.Thanks to them, there is an automatic currency conversion at the rate set by the Central Bank of the Russian Federation.All calculations are performed in real time.

Converters can be navigated by date.Thus, it is possible to make calculations based on the value of the currency as of a particular date.With this feature, the user can compare the results of calculations and decide whether to convert the currency now or better wait.

How to calculate the fees charged when withdrawing money with a bank card abroad

Many Russians now prefer to travel abroad do not take all the cash and pay using a bank card.It's really very convenient and useful thing.The main advantage for tourists, probably, is its safety, as even in the case of theft of a card, simply to block, and then the operation it would be impossible to carry out.With the help of bank cards settlements, as well as currency conversion.It transfers the currency of one country (which is on your card) to another (you need at this time to pay bills or withdraw cash).

main thing - to know exactly what a trip to the directed place this card can pay off.Also it is necessary once again to make sure that the card currently on the trip will be valid.

order to calculate what will be the Commission, withdrawn from the account when making payment abroad, you must consider the fact whether the commission will be charged for all transactions abroad.Banks sometimes do not charge this fee or provide a small flat fee or a percentage of the amount of payment.

Often people want even before you go to find out how much money they will receive when withdrawing money abroad.However, the bank does not know that for sure, because, depending on the time, place, conditions partner banks with local laws in the process of cash withdrawal amount may be different.