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Hi. I am a little confused about when I’m supposed to divide or multiply to the translate the foreign currency.
In this example they multiply
Exchange rates
$ to £1
30 October $1.90
30 November $1.98
31 December $2.03
31 January $1.95And in this example, they divide
Exchange rates AUD to $
29 November 1.52
31 December 1.66Hi,
It all depends on how the currency quote is given, i.e. which is the currency quoted as “1”, and then which currency you are trying to then calculate from what has then been given.
Above you have $1.90 to the £1. So, if I have £1 then I can get $1.90. So, to get from the GBP to the USD then I will have to multiply because it I had £2 then I would have $3.80 (2 x $1.90).
If we are given the USD figure then we’re effectively working backwords and would be dividing by the $1.90 to get to the GBP.
Hope that helps.
Thanks
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