Exchange rates answer one question: how much of one currency do you need to buy another? But who sets that number? The answer depends on the currency — there are three main systems.
Floating rates
Most major currencies — the US Dollar, Euro, Japanese Yen, British Pound — float freely. Their value is set continuously by supply and demand on the global foreign-exchange market, the largest financial market in the world with a daily turnover of more than 7 trillion US dollars.
Fixed (pegged) rates
Some currencies are pegged to another currency. The Saudi Riyal and UAE Dirham are fixed against the US Dollar; the Danish Krone is pegged to the Euro. The central bank commits to buying or selling its currency to keep the rate inside a narrow band.
Managed rates
Many currencies, such as the Chinese Yuan, are managed: the central bank allows market movement but steps in when the rate moves outside an acceptable range.
Where Fxverter's rates come from
Fxverter shows reference rates: end-of-day rates published by the European Central Bank and other public sources. They are excellent for comparing, planning and estimating — but banks and card networks add their own margins and fees, so the rate you actually pay for a transfer will differ. Always confirm the final rate with your bank or provider.