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Currency Converter

— Mejbah Ahammad

Currency Converter
Mejbah Ahammad © 2024

Use Case Scenario:

In global commerce and travel, currency conversion is crucial for budgeting and financial transactions. A simple currency converter can help users quickly convert amounts between different currencies based on recent exchange rates.

Python Function: convert_currency

def convert_currency(amount, from_currency, to_currency, exchange_rate):
    converted_amount = amount * exchange_rate
    return converted_amount

Code Explanation:

  • def convert_currency(amount, from_currency, to_currency, exchange_rate):: This line defines a function named convert_currency that takes four parameters:
    • amount: the quantity of money to convert.
    • from_currency: the currency code from which the amount is being converted.
    • to_currency: the currency code to which the amount is being converted.
    • exchange_rate: the rate at which from_currency is converted to to_currency.
  • converted_amount = amount * exchange_rate: Inside the function, this line calculates the converted amount by multiplying the original amount by the exchange rate provided.
  • return converted_amount: The function returns the converted amount, completing the currency conversion process.

Function Output:

# Example usage
amount = 100
from_currency = "USD"
to_currency = "EUR"
exchange_rate = 0.85  # Hypothetical exchange rate

# Convert currency and print the result
converted = convert_currency(amount, from_currency, to_currency, exchange_rate)
print(f"{amount} {from_currency} is equivalent to {converted:.2f} {to_currency} at the exchange rate of {exchange_rate}.")

Expected Output:

100 USD is equivalent to 85.00 EUR at the exchange rate of 0.85.

Resources for Further Learning:

  • Forex Python: A library that simplifies currency conversion and retrieves current currency exchange rates.
  • Currency Conversion in Financial Analysis: Investopedia explains the importance of currency conversion in financial markets and international trade.
  • APIs for Currency Conversion: A practical API for retrieving real-time or historical foreign exchange rates, ideal for integrating into financial applications.

This function provides a basic framework for currency conversion, useful in various applications where real-time financial data integration is necessary.