Currency exchange: at the bank counter
Change money sent home from abroad into rupees, buy Indian rupees for a trip, and see why the bank's buying and selling rates differ.
Core concept
The bank buys foreign money at its buying rate and sells it at its higher selling rate; the difference is its margin
Topic: Currency exchange
Many families in Nepal receive money from relatives working abroad. At the bank, the foreign money is changed into Nepali rupees using the bank's buying rate, because the bank is buying the foreign currency from you. If you need foreign money, for example Indian rupees for a trip, the bank sells it to you at its selling rate, which is a little higher. Indian rupees are quoted per 100: INR 100 = NPR 160.15 when selling. To convert, multiply the amount by the rate for one unit.
What you will learn
- Convert foreign currency to Nepali rupees and back using an exchange rate.
- Choose the buying or the selling rate correctly.
- Work with rates quoted per 100 units.
Before you start
- Multiplying decimals.
Materials
- A newspaper or bank notice with today's exchange rates
Equipment
- A calculator
Procedure
- Tap the currency chip to choose USD, INR, QAR or MYR; tap − or + to change the amount.
- Tap the direction chip: change a remittance (the bank buys) or buy foreign money (the bank sells).
- Record changing a 100 US dollar remittance, and buying 5,000 Indian rupees for a trip.
- Record a 1,000 Qatari riyal remittance, and the same amount changed both ways.
How this simulation is simplified
- The rates shown are examples for practice, not today's rates.