A exchange rate is the rate at which one cash can be traded for an alternate. At the end of the day, it is the estimation of an alternate nation's coin contrasted with that you could call your own. On the off chance that you are heading out to an alternate nation, you have to "purchase" the neighborhood money. Much the same as the cost of any benefit, the swapping scale is the cost at which you can purchase that money. On the off chance that you are flying out to Egypt, for instance, and the swapping scale for U.S. dollars is 1:5.5 Egyptian pounds, this implies that for each U.S. dollar, you can purchase five and a half Egyptian pounds. Hypothetically, indistinguishable resources ought to offer at the same cost in distinctive nations, in light of the fact that the swapping scale must keep up the inalienable estimation of one money against the other.