# Determine the Amount in CHF for a GBP Transaction

When engaging in international trade, it is crucial for exporters and importers to understand how currency conversion works. To illustrate this, let's consider a scenario where a British exporter sells GBP

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When engaging in international trade, it is crucial for exporters and importers to understand how currency conversion works. In this article, we will explore the process of calculating the amount in Swiss Francs (CHF) that a Swiss importer needs to pay for a GBP transaction. To illustrate this, let's consider a scenario where a British exporter sells GBP 100,000 worth of beer to a Swiss importer.

## Step 1: Determine the Exchange Rates

The first step in calculating the amount in CHF is to determine the exchange rates involved in the transaction. In this case, we are given that EUR/GBP is trading at 0.8567 and EUR/CHF at 1.402.

## Step 2: Convert GBP to EUR

Since we have the exchange rate for EUR/GBP, we can convert the amount in GBP to Euros (EUR) first. To do this, we divide the GBP amount by the exchange rate:

GBP 100,000 / 0.8567 = EUR 116,647.84

Therefore, the GBP 100,000 is equivalent to EUR 116,647.84.

## Step 3: Convert EUR to CHF

Now that we have the amount in Euros, we can proceed to convert it to Swiss Francs (CHF) using the EUR/CHF exchange rate. To do this, we multiply the EUR amount by the exchange rate:

EUR 116,647.84 * 1.402 = CHF 163,553.77

Therefore, the Swiss importer needs to pay CHF 163,553.77 for the GBP 100,000 worth of beer.