Doing dollar conversions?

Question

I have been looking @ conversions for so long tonight, I have forgotten which is better, if a conversion greater than 1 is good or bad.

ie, 1USD = 1.2NZD

does that mean that an American can travel more cheeply in New Zealand than say England where 1USD = 0.5 GBP?

I new this morning but now I have completely confused myself.

Answer 1

I'll try to put it as easily understood as possible!!

1USD=1.2NZD       this means that if you wanted to buy one American dollar it would cost you 1.20 New Zealand dollars...or for one-hundred American dollars, it would cost you one-hundred and twenty dollars NZ (if you are American, you will spend $100.00USD and you will get $120.00 NZD)

And yes, it would be MUCH cheaper to travel in NZ than to travel in the UK....

1USD=0.5GBP       this means that if you wanted to buy one pound, it would cost you $2.00 USD.....or for one dollar American, you'd only get 50 pence (50 cents) in the UK

Hope that helps!

Answer 2

The conversion rate does not tell you if one country is cheaper than another. It simply tells you how much of one currency you will receive for your currency.

One U.S. dollar will get you about 112 Japanese yen. However, that does not make Tokyo cheap for an American. In reality, it is quite expensive to go there.

The only way to find out if a country is "cheap" is to check the costs (such as hotel prices) in the country to which you are traveling and convert the price to your currency. That will tell you if it is more or less expensive than your own country.

Answer 3

it means the us dollar is slightly stronger than the New Zealand currency.  So if I wanted your currency the bank would give me 1.20$ for 1.00 givin me an extra .20$

Answer 4

Yes, you have it right...

If youre ever stuck - I always use this converter >

http://www.xe.com/ucc/

Its the most up to date and accurate way to convert currency values.