Currency Exchange Rates: How They Work and How to Get the Best Rate
Published: 2026-05-09 · 6 min read
Whether you're traveling abroad or sending money internationally, understanding exchange rates can save you hundreds of dollars.
How Currency Exchange Rates Work
An exchange rate is the price of one currency expressed in terms of another. For example, if EUR/USD = 1.08, it means 1 Euro equals 1.08 US Dollars.
Types of Exchange Rates
| Type | Description | Who Uses It |
|------|-------------|-------------|
| Mid-market rate | The "real" rate between buy/sell | Benchmark only |
| Buy rate | Rate to buy foreign currency | Travelers, importers |
| Sell rate | Rate to sell foreign currency | Exporters |
| Spot rate | Curr...
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