Currency exchange is the process of converting one type of money into another. This is important for travelers who need to change their home currency, like US Dollars, into the local currency of the country they are visiting, such as Euros or Yen. Currency exchange also plays a vital role in international trade, where businesses need to pay for goods and services in different currencies. Exchange rates determine how much one currency is worth compared to another. These rates can fluctuate based on various factors, including economic conditions and market demand. People can exchange currency at banks, airports, or specialized exchange services, making it easier to conduct transactions across borders.