Money matters student

 Changing money

Vocabulary
exchange rate

směnný kurz

buying range

nákupní kurz

selling rate

prodejní kurz

determine

určit, stanovit

trading

obchodování

fluctuate

kolísat, měnit se

constantly

nepřetržitě, neustále

interest rate

úroková sazba

inflation rate

míra inflace

political stability

politická stabilita

general state of economy

celkový stav ekonomiky

demand for

poptávka po

commission

poplatek

amount

suma, částka

withdrawal

výběr

refer to

vztahovat k

The currency of a country can be exchanged for another country´s currency. The price for which the
currency can be exchanged is exchange rate. The buying rate is the rate at which money dealers buy
foreign currency, and the selling rate is the rate at which they sell the currency. Exchange rates are
determined in the foreign exchange market where currency trading is 24 hours a day except
weekends.

Exchange rates fluctuate constantly and are influenced by interest rates, inflation rate,
political stability, general state of economy of the country. A high demand for a particular currency
usually means that the value of that currency will increase.

3

What is the exchange rate of Czech koruna to euro? / How many korunas are there to euro?
How much commission do you charge? (= How much does it cost to change money?)

There are a few places where we can exchange money. Before we do that, we usually compare
exchange rates of different financial institutions and choose the most advantageous rate.

The safest place where to exchange money is a bank. In large cities banks sell most world´s
currencies.
Exchange offices at airports offer rates which are not advantageous. There you buy foreign currency
with a loss. Large hostels offer exchange services for their customers which are only slightly better
than at airports and often sell only the major currencies (pound, yen, U.S. dollar and euro).
A cash point gives the best exchange rates. However, banks often charge high amounts for
withdrawals from cash points that are not theirs. And it can be hard to find a cash point outside
major cities.
To change money in the street is not always safe and advantageous. They publish 0% commission
but many of them refer this only to “sell” and not to “buy” transactions.

Listening exercise

Read and listen to conversations of people exchanging money and learn the phrases used in
them. Business Goals 2, unit 11, track 43, 44, 45)
A.Clerk: Good morning.
Customer: Morning. I´d like to change US dollars to Swiss francs, please.
Clerk: Certainly. How much do you want to change?
Customer: 500 dollars.
Clerk: OK. The exchange rate is 1.35 to the dollar, so you will receive 675 Swiss francs.
Customer: OK.
B. Clerk: Good afternoon.
Customer: Hi. Can I change euros to South African rand, please.
Clerk: No problem.
Customer: What´s the exchange rate?
Clerk: It´s eight rand to the euro at the moment.
Customer: OK. I´d like to change 750 euros, please.
Clerk: Thank you. 750 euros buys 6,000 rand, minus 1% commission, that´s 60 rand.
So you´ll receive 5,940 rand. Is that all right?
Customer: That´s fine.
C. Clerk: Can I help you?
Customer: I´d like to buy Japanese yen, please, with Australian dollars.
Clerk: How much are you changing?
Customer: What´s the exchange rate?
Clerk: 75 yen to the dollar.
Customer: I´ll change 400 dollars, please.
Clerk: OK. You´ll receive 30,000 yen.
Customer: Thank you.