Currency Converter and Exchange Rate Guide 2026

The exchange of value between currencies in the global economy directly affects both individual savers and businesses. In this guide, we will examine how exchange rates are determined, the concept of parity, and the most accurate calculation techniques.

What is an Exchange Rate?

An exchange rate is the value of one currency in terms of another. For example, the number showing how many Turkish Lira 1 US Dollar is worth constitutes the USD/TRY rate.

Rate Types

• Buying Rate (Bid): The rate used by banks or exchange offices when they buy currency from you.
• Selling Rate (Ask): The rate you pay when you buy currency from the bank. It is usually higher than the buying rate.
• Spread: The difference between the buying and selling rates.

The Concept of Parity and Its Importance

Parity is the ratio between two currencies. The most popular parity, EUR/USD, shows how many Dollars 1 Euro is worth. Parities are influenced by factors such as countries' economic strength, interest rates, and political stability.

Factors Affecting Parity

1. Interest Rates: Central bank interest rate decisions change the demand for a currency.
2. Inflation: High inflation usually leads to currency depreciation.
3. Current Account Deficit: The balance of foreign trade can put pressure on parities.

How to Calculate Currency Conversion?

For a simple currency conversion, you can use the following formula: Target Amount = Your Amount * Exchange Rate

For example, if you have 100 Dollars and the rate is 30 TL; 100 * 30 = 3000 TL is what you get.

To perform all these calculations instantly with up-to-date data, you can use our Currency Converter Tool.

Frequently Asked Questions

How often are live exchange rates updated?

Rates change instantly as long as the markets are open. The tools on our website update information received from reliable data sources at regular intervals.

What is Arbitrage?

It is the process of making a profit by exploiting the price difference of the same currency in different markets. In modern markets, it is difficult to do because these differences close very quickly.

Which currency is safer?

Usually accepted as "Safe Haven," the Swiss Franc (CHF) and the US Dollar (USD) are preferred during periods of economic uncertainty.