Whether traveling to a country that uses pesos or conducting international commerce, you need to know how to convert dollars to pesos and vice versa. Luckily, there are several simple ways to figure it out.
Find the Dollar Rate Today
The actual value of a monetary unit changes daily for several complex economic and political reasons. Those fluctuations mean that the exchange rate, or the relationship between two currencies, is also very fluid. To convert pesos to dollars today, you need an up-to-date exchange rate. You can find these through the United States Federal Reserve, but it's easier to use the resources provided by the experts at X-Rates, which the IRS links to in their guide for preparing taxes for foreign taxpayers. You can find the peso on the currency list at the bottom of the page.
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It's crucial that you use the correct peso. Just as multiple countries use the dollar (the U.S., Canada and Australia), several countries use the peso and its worth varies from country to country. The countries that use pesos are Argentina, Chile, Colombia, Cuba, Dominican Republic, Mexico, Philippines and Uruguay. Each peso has a different current value, so if you use the wrong peso, you aren't going to get an accurate exchange.
Consider also: How to Convert US Dollars to Euros
How to Convert Dollar to Peso
You'll use a simple multiplication or division formula to convert currency; multiply the amount of money you wish to convert by the exchange rate. The most critical component of this equation is ensuring that you do the exchange in the correct order. For example, in Mexico, you want to purchase a souvenir worth 129 pesos. At this writing, one Mexican peso equals 0.05 American dollars; therefore, you can multiply 129 by 0.05, which is $6.45.
If you plan to vacation in the Philippines and have a budget of $1,500 American for spending, you can use a similar formula, only this time, you'll divide. The current Philippine peso is worth 0.019 American dollars, so you will need to divide $1,500 by 0.019. This calculation will give you a value of 78,947.36 Philippine pesos.
It can be particularly challenging to determine whether you should use multiplication or division. A straightforward way of thinking about it is this: if the dollar is worth more than the peso (as is usually the case for all countries that use it) and you're converting dollars to pesos, your final number should be larger, so use division. If you're converting pesos to dollars and the peso is worth less than the dollar, the final number should be smaller, so use multiplication.
Consider also: How to Convert Dollars to Yen
Use a Pesos to Dollars Calculator
Many websites have reliable currency calculators that you can simply plug your numbers into and get the answer you need. Google has its own, as does Wells Fargo, CNN Business and many other financial institutions. The experts at the Bank of America also provide a currency calculation. Experts recommend using a converter affiliated with a reputable institution for accuracy.
Especially if you're traveling, you can download a currency converter app on your phone, which is very convenient. Be aware that you must be connected to the internet for live, accurate currency exchange rates. Especially for business people, the current currency conversion rate isn't always enough; they also need to know past trends and have an idea of the dollar to peso forecast. This information is also readily available online.
The best place to look for U.S. dollar to Philippine peso history is X-Rates or the Federal Reserve. The International Monetary Fund and the Wall Street Journal also maintain these records. To learn more about forecasted values, consult financial experts with knowledge about the country.
Consider also: How to Make Money with Currency Exchange