The exchange rate of a currency is pretty important to take into consideration when travelling. If the currency of your home country is going strong, you’ll find that a lot of your international trips just became a lot more affordable since for the same amount of cash that you were taking with you, you’ll be able to enjoy more since everything feels like it costs less. Exchange rates of common currencies are very susceptible to change since it’s changing hands all around the clock. Usually the rate of exchange for a currency is decided by traders in the market of foreign exchange but governments do play a role in influencing that rate.
For the most part, when you travel to a country you’re going to need the currency of that country and of the right kind. For instance, what currency is used in Italy is no longer the Lira like it was in older times but now it’s the common Euro which was adapted in 2002. Knowing the exchange rate is vital so that you don’t get scammed. You might come across a kind stranger at a tourist attraction that offers you a lucrative rate for your foreign money, but they could giving you fake bills in exchange for your real money and you won’t know any wiser since you aren’t accustomed to the look and feel a new countries money.
It’s better to get your money exchanged at the bank when possible. Other money exchangers might not give you a lucrative rate, but they will charge a lucrative commission so that when everything’s said and done, you walk out with even less money that you walked in with. This is all a part of the process however and sometimes there’s nothing to be done about it.