Currency exchange

A currency exchange (货币兑换 huò bì duì huàn) is a business that is legal to convert/exchange (兑换 duì huàn) a currency (货币 huò bì) which its customers currently hold for another currency. There also exist black-market currency exchanges.

Part 1: Breakdown of Words

• “Currency” (货币 huò bì) as in “electronic currency” (电子货币 diàn zǐ huò bì) or “legal tender” (法定货币 fǎ dìng huò bì).
  • “货” (huò) as in “goods” (货品 huò pǐn), “shelf” (货架 huò jià), or “lorry” (货车 huò chē).
  • “币” (bì) as in “RMB” (人民币 rén mín bì), “Bitcoin” (比特币 bǐ tè bì), or “coin” (硬币 yìng bì).
• “Exchange” (兑换 duì huàn) as in “exchange rate” (汇率 huì lǜ).
  • “兑” (duì) as in “fulfill/exchange for cash” (兑现 duì xiàn), or “bank run” (银行挤兑 yín háng jǐ duì).
  • “换” (huàn) as in “exchange/barter for something” (换取 huàn qǔ), “exchange/swap/shift” (调换 diào huàn), or “elect when a term of office expires” (换届 huàn jiè).

Part 2: Examples

1. Currency conversion rate (兑换率 duì huàn lǜ) or exchange rate (汇率 huì lǜ).
2. Exchange rate parity (平价 píng jià).
3. RMB exchange rate (人民币汇价 rén mín bì huì jià).