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Kotas on Wheels - Palesa learns about exchange rates
Since starting Kotas on Wheels, Palesa hasn't been able to take a break. Phuti, her business manager, has convinced her to go on a little holiday. What's more, two of Palesa's best friends have sprung a surprise visit on her. Chica is from Nigeria and Kefilwe from Botswana. Together the decide on a holiday in Durban. Let's join Palesa and her friends to learn about exchange rates. Chica needs to change her Naira and Kefilwe her Pula for Rands.
Podcast Kotas on Wheels Exchange Rates
00:00
Welcome to Living Finance - Kotas on wheels. Palesa's business Kotas on Wheels is doing really well. In each episode, we unpack a financial challenge with Palesa and learn how to solve it. In this episode, Palesa goes on holiday and learns about exchange rates.
00:23
Because of the success of Kotas on Wheels, Palesa has been working very hard. Phuti, Palessa's business manager, persuades her to take a break. Phuti also has a surprise for her. Palesa's two best friends Chica and Kefilwe have come to visit. Chica is from Nigeria, Abole, and Kefilwe is from Botswana Dumela. They arrive in South Africa, ready to take their friend on holiday. They decide to go on a beach vacation in Durban.
Now they need to work out the exchange rate between the South African Rand Nigerian Naira and Botswana's Pula so they can plan they get away.
01:06
Chica has currency from Nigeria, where the money is called Naira. Kefilwe has money from Botswana, which is called Pula.
The exchange rate is a way to compare the value of the currencies used in different countries at a particular point in time. So that's one currency can be exchanged for another currency.
Different currencies have different values, depending on the strength of the country's economy. The exchange rate depends on many factors such as developments in the global and local economy, and politics of different countries. It can change daily.
Palesa and her friends look on XE.com to check the exchange rates between the Naira, Pula and Rand for that day.
1:55
One Rand is equivalent to 24 comma one for Nigerian Naira. Wow. So 100 Rand will be 100 times that. That's about 2400 Naira. That sounds like a lot. Chica will have to exchange 1000s of Naira to have enough to pay for a holiday in South Africa. When they compare the Rand to the Pula for the same day, they find that one Rand is equivalent to zero comma seven for Pula. So 100 Rand is equivalent to only 74 Pula. In South Africa, Kefilwe's 74 Pula can buy the same as Palesa's 100 Rand.
02:37
The three friends work out they will need about 9000 Rand between them to stay four nights at a bed and breakfast in Durban and go to the beach every day. And of course, to enjoy a delicious Durban curry. They decide to pay 3000 Rand each for Chica 3000 Rand equals 72,420 Naira, for Kefilwe 3000 Rand equals 2220 Pula.
03:06
What has Palesa learnt? The value of a country's currency is determined by the exchange rate on that day. And we can convert the Naira from Nigeria and Pula from Botswana, into South African Rand. We do this using the exchange rate. Palesa has also learned that when you work very hard, you really need a holiday. Since starting Kotas on Wheels, Palesa hasn't been able to take a break. Now she's having her dream holiday swimming in the ocean with her friends.
Find more episodes of Kotas on Wheels wherever you get your podcasts or on our website or O M Learn Think Do.com Kotas on Wheels is brought to you by Old Mutual Learn.Think.Do