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In this text, you will learn 10 unmissable facts about foreign currencies and clear up all your doubts at once!
Whether you're traveling or shopping abroad, foreign currencies are now part of our daily lives. Although credit cards are the main payment method abroad, there are other very advantageous options.
In fact, this is exactly what we are going to show in this content: 10 interesting facts about foreign currencies. So, in just a few moments you will expand your horizons and have the necessary knowledge to do excellent negotiations around the world. Check it out!
1 – What are international currencies and what are their values?
The first curiosity we will address is in relation to what an international currency actually is. In short, a foreign currency is like a commodity with a specific value determined by demand at the time. In other words, the price varies according to the law of supply and demand.
Thus, each country has a specific currency with a three-letter code, which is defined according to the International Organization for Standardization in order to avoid confusion. In total there are around 182 currencies in circulation around the world!
What is the value of a foreign currency?
The formula for the composition of the value of an international currency involves several factors such as: economy, risk, liquidity, trade balance, among others.
Therefore, knowing the value of foreign currencies around the world is essential for negotiating international travel and purchases. In addition to reducing losses, you also maximizes your purchasing power.
So, to make this process easier, we have developed a list of the main currencies on the international market and their average exchange rate, as we will see in the table below:
| Coin | Acronym | Average quote |
| Canadian Dollar | CAD | 0.79 USD |
| US Dollar | USD | 5.15 BRL |
| Euro | EUR | 1.08 USD |
| Cayman Islands Dollar | KYD | 1.19 USD |
| Pound sterling | GBP | 1.30 USD |
2 – What to do with foreign currencies?
What to do with foreign currency left over from a trip? Sell it? Exchange it? Or spend it? Well, you can do all of these things and even invest it and save more for your next trip.
Sell your foreign currencies
An interesting way to make the most of foreign currency left over from a trip is to sell it at a currency exchange. In this case, The ideal is to wait for the variation and choose the best moment to exit with a profit.
Add balance to a prepaid credit card
Another option on what to do with foreign currencies is to add the balance to a international prepaid credit card. After all, through this feature you can convert and withdraw money directly in the local currency wherever you are.
Use your foreign currency on airport promotions
In advance, also take advantage of the opportunity to use your foreign currency in promotions: the famous Free Shops, which are located in the departure and arrival lounges. There, you can find everything from electronics to chocolates made in different parts of the world.
Transfer foreign currencies to an international account
Finally, the last tip for making the most of your travel change is to transfer the money to an international account such as C6 Bank Global, for example. With this feature, you have the flexibility to do online exchange 24 hours a day directly through the app. In addition to having a debit card to buy from international stores.
3 – Where can I get foreign currency?
Currently, there are several options for obtaining foreign currency, however you need to analyze carefully so as not to end up paying absurd fees.
In other words, first of all, put the two fundamental pillars into practice: buy in advance and set aside an amount to take advantage of price drops.
👉 Once you've done that, just put it into practice and make your purchase on one of the platforms mentioned below!
Prepaid credit card
The easiest way to get foreign currency is through international prepaid cards. All you need to do is top it up with the desired amount in reais and convert it. Furthermore, if you have change left over, you can easily convert it into other currencies.
Transfer to global accounts
As mentioned in the topic above, foreign accounts are exclusively for depositing international currencies. In fact, conversions are made online in a practical and bureaucracy-free manner.
Airport
At the destination airport you can buy currency directly at the exchange offices. However, conversion is usually a little more expensive when compared to prepaid cards and transfer to global accounts.
Banks
Another option for purchasing is traditional banks such as Santander, Itaú, Banco do Brasil and the like. The best part is the convenience, since there is the possibility of carrying out the procedure well before the trip.
🔜 However, in most cases you need to have an active checking account and financial charges are charged at the time of the transaction.
Currency Exchange
In principle, currency exchanges are establishments exclusively for buying and selling international currencies and are present in several locations. However, to make a good deal you need to be aware of exchange rate variations and fees. Furthermore, the transaction is made instantly and you can withdraw the money in cash right away!
4 – How does the quotation of foreign currencies work?
In advance, the price of an international currency is defined according to the variation in supply and demand throughout the day. In other words, when there are many coins in circulation in our country, the price tends to fall. On the other hand, when there are few resources available, the price rises.
Let's take the US dollar as an example, which is the most traded currency in the world. Therefore, any change in the American economy results in an effect on the currency, and this can be favorable or not.
In Brazil, the person responsible for supervising the foreign exchange market is Central BankNo financial institution can sell foreign currencies without authorization. Therefore, every day the Central Bank calculates the average price on the market and publishes it.
5 – How to declare foreign currencies in Income Tax?
First of all, it is important to point out that declaring international currencies in Income Tax is mandatory from values equivalent to R$140.00 in possession and taxable income above R$28,559.70 in the calendar year.
The balance must be reported in the “assets and rights” section, in the “new” tab, then in code 64, cash – “foreign currency”. Then inform the country where you live, which in Brazil is 105. Once done, describe all the details of the currency and the current exchange rate in the discrimination field.
Additionally, the following transactions must also be declared:
- Profit obtained from the sale of international money;
- Leftovers from the purchase of foreign currency;
- Bank transactions with international money or in foreign accounts.
6 – What is the foreign currency exchange rate and how does it work?
At this initial stage, it is important to know what the exchange rate is and how it works!
In short, this rate is nothing more than the value of one currency in relation to another and the dollar is always used as a reference for financial operations in commerce and tourism. However, the exchange rate in Brazil can be calculated in any currency in relation to the real.
As we saw in the previous topic, the country's economy and the law of supply and demand are relevant factors when it comes to fluctuating currency values. But in addition to these two pillars, there is also the exchange rate regime: fixed exchange rate and floating exchange rate.
Fixed exchange rate
A fixed exchange rate is one in which the government establishes the value of the currency and then the Central Bank steals the show to maintain the price. In this case, the policy used is to buy and sell dollars using international reserves.
Floating Exchange Rate
On the other hand, in a floating exchange rate, the value of money is defined through buying and selling. Thus, the value of the foreign currency determines the value of the Brazilian currency and the greater the demand, the higher the value in relation to the real.
👉 The regime adopted in Brazil today is floating exchange rate and the rate varies depending on the purchase or sale transaction.
7 – What are the best foreign currency to real converter options?
Want to know the value of your foreign money in Brazilian currency? Nowadays, getting a quote online is easy and simple! Even so, we at Cred Consultation We have created a list of the best websites on the internet to carry out the procedure!
Central Bank Currency Converter
Node Central Bank currency converter You have access to the values of more than 50 different currencies around the world and you can even choose the quote date. In other words, in addition to knowing the value today, you can also monitor the fluctuation in the past.
Foreign currency converter to real Best Exchange
Through the platform Best Exchange The user converts the Brazilian real into around 20 currencies. There is also the option to monitor the exchange rate of the tourist dollar directly in your city and the corresponding variations over the months.
Finance One Currency Converter
With Finance One, you have the flexibility to know the exchange rate of more than 50 international currencies at any given moment. To do this, simply enter your balance in reais and then select the currency of the destination country. The conversion is done in less than a minute, however. It is not possible to follow the variations of previous days.
Calculator to convert currencies iDinheiro
THE iMoney It has a very simple calculator to use and provides quotes between the 13 main currencies in the world. Just enter the amount you want to convert, the currency to convert to and the converted currency. Just like the Finance One platform, there is no way to know the fluctuations of previous days.
8 – Global Accounts are a great alternative for foreign currency transactions
Before discussing the best Global Account options at the moment, it is important to mention how the financial product works. In short, a global or international account is an account for moving money in gold or dollars (most often).
C6 Bank Global Account
THE C6 Bank global account There are no fees charged, so much so that customers can use it to make international remittances, cash withdrawals and purchases with more attractive rates. There is even the possibility of receiving and transferring money from other banks abroad.
Another difference is the free withdrawal in dollars at Chase ATMs in the United States.
Important fees you need to keep an eye on
| Issuance of international debit card | US$ 30.00 |
| IOF for remittances | 1,1% |
| IOF for credit card transactions | 6,38% |
| IOF return | 0,38% |
| Inactivity fee | US$10.00 or Euro |
| Fee for transfer via Wiretransfer | US$30.00 (send) / US$15.00 (receive) |
BS2 Go Global Account!
Similar to C6 Bank, the BS2 Go does not charge maintenance fees or monthly fees. Conversions are made based on the commercial dollar. The difference is in no inactivity fee and the Platinum line Mastercard debit card with exclusive benefits and free issuance. Furthermore, transfers between BS2 Go accounts are free of charge!
Important fees you need to keep an eye on
| Sending and receiving payment orders | US$12.00 |
| IOF for remittances | 1,1% |
| IOF return | 0,38% |
| ATM withdrawals | US$5.00 (plus network fee) |
| IOF for credit card transactions | 6,38% |
Wise Global Multi-Currency Account
Among the global accounts we cannot fail to mention the Wise, an international digital account that is easy to sign up for and has no maintenance fees. The account also has a free debit card that can be used in over 200 countries and you can convert your money into up to 53 currencies.
Important fees you need to keep an eye on
| IOF on remittance | 1,1% |
| IOF for debit card purchases | 1,1% |
| IOF return | 0,38% |
9 – How does the international credit card work?
You international credit cards provide more comfort in your international travels and purchases, after all there is the option of paying in installments! But if on the one hand there is ease, on the other there is the charging fees and the currency variation on the invoice closing date.
For example, let's say that today you buy a certain item with the dollar being worth R$5.00 and on the closing date of your credit card statement there is a variation and each dollar is equivalent to R$7.00. In this case, the amount charged will be the amount on the closing date and not the amount on the purchase date.
Despite this, the international credit card provides many benefits such as purchase protection, rental insurance, international medical assistance and even concierge services to make your trip easier!
The best international credit cards of the moment!
Itaucard Azul Visa Platinum
First of all, this card is a partnership between Itaú bank and Azul airline. Among the main advantages we can mention the points program, free baggage for international flights in the USA/Europe and Pay for tickets in up to 21 interest-free installments!
Next International Credit Card
Now, if you are looking for a simple credit card that is easy to approve, but without many benefits, Next will meet your needs well. One of the advantages of this international payment method is that exemption from annual fees.
Itaucard Latam Pass
The Latam Pass credit card has arrived to replace the card from the old Multiplus points program. The advantage is that all your expenses are converted into miles and to have access the consumer needs to have a minimum income of just R$$800.00. The annual fee is free whenever you reach R$1,000.00 on your invoice.
Nubank international credit card
And among the international cards we cannot fail to mention Nubank: a card with no annual fee and easy to approve. In addition, the client has the opportunity to transfer and receive money in foreign currencies directly through Nuconta. The resource is a partnership between the financial institution and Remessa Online.
Take the opportunity to read too⤵️⤵️⤵️
👉 THE What is an international credit card? Find out how it works!
👉 International prepaid credit card: get your questions answered!
10 – What are the main foreign currencies in the world?
To conclude our topic on the curiosities of foreign currencies, it is essential to discuss the main ones in circulation in the world! Do you want to know what they are? We have separated the main information in the lines below.
US Dollar: The World's Leading Foreign Currency
In fact, the US dollar is the world's main foreign currency and the one that moves the global economy the most. The currency is also used as a base factor for transactions and is one of the main ones in the foreign exchange market.
Euro
Unlike the US dollar, the Euro is one of the youngest currencies in the world and was only introduced into the economy in 1999. Even so, money leads the second place of the most important currencies in the worldIn fact, more than 19 European countries have already adopted the Euro as their official currency.
Pound sterling: the most valued foreign currency in the world
In third place we have the Pound Sterling, considered the most valued foreign currency and also one of the oldest in the world. The official currency of the United Kingdom has been around since 1489 and today it is an international reference used in several different border operations.
Furthermore, one of the main factors that help with appreciation is the fact that London is the main financial center in Europe and the world, where the stock exchange concentrates a high volume of stock trading and the international currency market.
Canadian Dollar
Canada is part of the world's largest foreign exchange reserve, and is also a tourist and business hub. The currency, in addition to being one of the largest in the world, is also one of the most valued, and is currently trading at around 0.79 USD.
Swiss Franc
This is the official currency of Switzerland, which is one of the richest countries in the world, where big business takes place and attracts millions of tourists. The currency is represented by the code CHF, one of the most important in the world and the exchange rate is around 1.06 USD.
Cayman Islands Dollar
The Cayman Islands Dollar is highly valued and popular due to financial investments, investment funds and concentration of insurance companies and banks. Represented by the acronym KYD, its value today corresponds to 1.19 USD.
Kuwaiti Dinar: The Most Expensive Foreign Currency in the World
The Kuwaiti Dinar is the most expensive foreign currency in the world and is worth three times as much as the US Dollar. This huge appreciation is due to oil, as Kuwait is a major exporter and the site of major commodity trading in dollars. The current average exchange rate for the KWD is 3.28 USD.
Bahraini Dinar
Along the same lines as the world's most important international currencies, we have the Bahraini Dinar, which is widely used in oil trading. Bahrain is an island state and does not need to print many notes to move the local economy. As a result, the currency has appreciated significantly in value against the dollar, which is currently worth approximately USD 2.68.
Conclusion
With globalization, foreign currencies are present in our daily lives, whether it's when traveling, shopping online or investing. If exchanging international currency into reais used to be a bureaucratic process, today you can do it in the palm of your hand and in just a few minutes.
However, Before opting for a credit card or global account, it is important to be aware of the rates charged and benefits offered by each financial product.. Then, analyze which option exactly covers your needs to make your request satisfactorily.
Did you enjoy learning these interesting facts about international currencies? Then take the opportunity to discover the best international prepaid credit cards. Click the button below and find out all the details.
