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Add next step in your pricing workflow by sending the price A determined above to a calculator below
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User Guide
This tool will calculate the inverse foreign exchange values by reverting prices in currency B to equivalent prices in currency A, using a specified currency A to B foreign exchange rate.
It is often necessary when selling items overseas to convert a customer’s target price or a competitor’s price in a foreign currency, into your own domestic currency to compare pricing in the same currency.
This tool allows you to specify your own foreign exchange rate, making it possible for you to use today’s rate, or a fixed one of your choosing, such as a hedged one that your finance or accounts department has advised sales and marketing to use for a limited time period.
Formula
The formula used by this calculator to determine the inverse currency conversion from price B to price A using an A to B exchange rate is:
PA = PB / e
Symbols
- PA = Price A
- PB = Price B
- e = Exchange rate
Price B
This is the price in currency B that you want to carry out an inverse currency conversion.
For example if you were pricing an item to be exported overseas, it would represent the price you would need to charge a customer in another country in their local currency, in order to match the value of the domestic currency price.
A to B Exchange Rate
This is the foreign exchange rate for converting money from currency A to currency B.
When carrying out an inverse currency conversion, the exchange rate is applied as a dividing factor to a price in one currency to a price of equivalent value in a different currency. e.g. £120 of foreign currency inversely converted to $ using a foreign exchange rate of 0.75, would equate to $160.
Price A
This is the inversely converted equivalent price in currency A.
For example this would be the export price for selling an item overseas defined in the local currency for the country in which your company resides.