Look at the Exchange Rate!!!

We all love travelling abroad, however, it involves converting currencies into the currency of the country visited.

How does it work?

The value of one country’s currency in terms of or in relation to another country’s currency is called the Exchange Rate. For instance this morning 1 Rand was exchanged for 3,97 Mozambican Metical: ZAR/MZN: 3,97 which simply means that if you were to travel to Mozambique this morning, you would have received almost 4 Mozambican Metical while only giving away just 1 South African Rand (excluding commission fee).

Based on the exchange rate of two currencies, one can say which one is stronger or weaker. From our current example, we will then say that the South African Rand is stronger than the Mozambican Metical.

The exchange rate is affected by many factors such as Political stability, Economic performance, Inflation, Terms of Trade, Public Debt and interest rate.

For the past 2 weeks, the Grade 11 students have been observing the exchange of the South Africa Rand against the US Dollar, British Pound, Botswana Pula and the Nigeria Naira through online channels. Here are some photos of our sessions

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