Introduction to World Currencies and Exchange Rates

P6 Mathematics - Term II, Topic 7

Lesson 1 of 4

Learning Objectives:

• Name different currencies used in Uganda, East Africa, and other countries
• Identify currency symbols
• Read and understand exchange rate tables
• Explain what an exchange rate is

What Do You Use to Buy Things?

Think about it:

• When you go to a shop, what do you use?
• What is the name of Uganda's money?
• Have you ever seen money from another country?

Uganda's Currency

Uganda Shilling (UGX or Shs)

Common notes:

• 1,000 Shs
• 2,000 Shs
• 5,000 Shs
• 10,000 Shs
• 20,000 Shs
• 50,000 Shs

Every Country Has Its Own Currency!

Key Idea:

• Uganda has Uganda Shillings
• Kenya has different money
• Tanzania has different money
• United States has different money
• Britain has different money

Why? Each country controls its own money supply and economy.

East African Currencies

Our Neighbors

Why Do We Need to Know East African Currencies?

Reasons:

• Trade - We buy and sell goods with Kenya and Tanzania
• Travel - People visit neighboring countries
• Business - Companies work across borders
• Education - Some students study in other countries
• Tourism - Visitors come and go between our countries

International Currencies

Powerful Global Currencies

Why Do We Need International Currencies?

Reasons:

• International trade - Buying goods from other continents
• Receiving money - Relatives working abroad send money home
• Travel abroad - Medical treatment, education, tourism
• Imports - Many products come from America, Europe, Asia
• Global business - International companies use these currencies

All Five Currencies - Review

Copy this table into your exercise book!

Practice: Currency Names

Work in pairs - complete these sentences:

1. The currency of Uganda is the ____________
2. The currency of Kenya is the ____________
3. The currency of Tanzania is the ____________
4. The currency of the United States is the ____________
5. The currency of Britain is the ____________

Answers: Currency Names ✓

1. The currency of Uganda is the Uganda Shilling
2. The currency of Kenya is the Kenyan Shilling
3. The currency of Tanzania is the Tanzanian Shilling
4. The currency of the United States is the US Dollar
5. The currency of Britain is the British Pound Sterling

What is an Exchange Rate?

Definition:
An exchange rate tells us how much one currency is worth in another currency.

Example:
If 1 US Dollar = 3,750 Uganda Shillings
This is the exchange rate between USD and UGX.

Think of it like:
Just as 1 dozen = 12 items,
1 US Dollar = 3,750 Shillings

Reading Exchange Rates

Exchange Rates (January 2025)

How to read: 1 US Dollar is worth 3,750 Uganda Shillings

Understanding Exchange Rates

Let's analyze the chart:

• 1 USD = 3,750 Shs
• 1 GBP = 4,850 Shs
• 1 KES = 29 Shs
• 1 TZS = 1.60 Shs

Questions:

• Which is worth more: 1 Dollar or 1 Pound?
• Is the Kenyan Shilling stronger or weaker than Uganda Shilling?

Analyzing Exchange Rates

Answers:

Question 1: Which is worth more?

• 1 GBP = 4,850 Shs (Pound)
• 1 USD = 3,750 Shs (Dollar)
• The Pound is worth more! (1,100 Shs more)

Question 2: Kenyan Shilling vs Uganda Shilling?

• 1 KES = 29 Shs
• The Kenyan Shilling is stronger (you need 29 Uganda Shillings to get 1 Kenyan Shilling)

Exchange Rates Change Every Day!

Important facts about exchange rates:

• Exchange rates are not fixed - they change daily
• They go up and down like prices in a market
• Banks, forex bureaus, and newspapers show current rates
• Economic conditions affect exchange rates
• That's why we say "January 2025 rates"

Where to find current rates:

• Banks (like Stanbic, Centenary)
• Forex bureaus (money changers)
• Newspapers (business section)

Practice: Reading Exchange Rates

Use the exchange rate chart to answer:

1. How many Uganda Shillings equal 1 US Dollar?
2. How many Uganda Shillings equal 1 British Pound?
3. How many Uganda Shillings equal 1 Kenyan Shilling?
4. Which foreign currency has the highest value in Uganda Shillings?

Work individually - 2 minutes

Answers: Reading Exchange Rates ✓

1. 3,750 Shs equal 1 US Dollar
2. 4,850 Shs equal 1 British Pound
3. 29 Shs equal 1 Kenyan Shilling
4. British Pound (£) has the highest value (4,850 Shs)

Well done if you got all four correct!

Why Do We Convert Currencies?

Reasons for currency conversion:

1. Traveling - When you visit another country, you need their money
2. Buying goods (imports) - Purchasing products from abroad
3. Selling goods (exports) - Selling products to other countries
4. Receiving remittances - Money from relatives working abroad
5. Tourism - Tourists exchange their money for Uganda Shillings
6. International business - Companies trading across borders

Real-Life Example: Traveling to Kenya

Scenario:
Mary is traveling to Kenya for a wedding.
She has Uganda Shillings but needs Kenyan Shillings to buy things in Kenya.

What must she do?
Go to a forex bureau (money changer) and exchange UGX for KES.

She needs to know:

• The exchange rate (1 KES = 29 Shs)
• How much to convert
• How to calculate the amount she'll receive

Real-Life Example: Receiving Money from Abroad

Scenario:
David's uncle works in the United States.
The uncle sends 50 US Dollars to help with school fees.

What happens?

• The money arrives as US Dollars
• David needs Uganda Shillings to pay school fees
• He must convert USD to UGX
• Using the rate: 1 USD = 3,750 Shs

How many shillings will David get? (We'll learn to calculate this in Lesson 2!)

Summary: What We Learned Today

Currencies:

• Uganda Shilling (UGX), Kenyan Shilling (KES), Tanzanian Shilling (TZS), US Dollar (USD), British Pound (GBP)

Exchange Rates:

• Tell us the value of one currency compared to another
• Change every day
• Found in banks, forex bureaus, newspapers

Why Convert:

• Travel, trade, business, receiving money from abroad, tourism

Key Vocabulary to Remember

• Currency - The type of money used in a country
• Exchange rate - The value of one currency compared to another
• Forex bureau - A place where people exchange currencies
• Convert/Exchange - To change money from one currency to another
• Remittance - Money sent from abroad by relatives
• Import - Buying goods from another country
• Export - Selling goods to another country

Looking Ahead: Tomorrow's Lesson

Lesson 2 Preview:

• We will learn to convert Uganda Shillings to other currencies
• You'll calculate how many Dollars, Pounds, or Kenyan Shillings you get
• We'll use division for these conversions
• You'll solve word problems about traveling and trading

Remember to bring:

• Your exercise book with today's notes
• The exchange rate chart we copied today

Quick Assessment

Answer in your exercise book:

1. Name the currency used in Kenya.
2. What does an exchange rate tell us?
3. According to our chart, how many Uganda Shillings equal 1 US Dollar?
4. Give one reason why someone would need to convert Uganda Shillings to Kenyan Shillings.
5. Which currency is worth more: 1 US Dollar or 1 British Pound?

You have 3 minutes!

Homework

Assignment for tonight:

1. Ask your parents or guardians:

   • Have they ever used or seen foreign currency? Which one?
   • Why did they need foreign currency?
   • Write 2-3 sentences about what they tell you

2. If you can find a newspaper, look for exchange rates in the business section:

   • Write down the rate for 1 US Dollar in Uganda Shillings
   • Write down the rate for 1 British Pound

3. List 3 reasons why someone might need to convert Uganda Shillings to another currency

Expected time: 15-20 minutes