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: The Uganda Shilling

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.

Currencies of Our East African Neighbors

Our Neighbors

Why We Need 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

Two Powerful 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

Practice Saying the Five 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 ____________

Checking Your Currency Name Answers ✓

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

How to Read an Exchange Rate Chart

Exchange Rates (January 2025)

What the Exchange Rate Chart Tells Us

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?

Checking Our Exchange Rate Analysis

Answers:

Question 1: Which is worth more?

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

Question 2: Kenyan Shilling vs Uganda Shilling?

• 1 KES = 29 Shs
• The Kenyan Shilling is stronger (29 UGX buys just 1 KES)

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 Exchange Rates

Where to find current rates:

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

Practice Reading the Exchange Rate Chart

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 - visiting another country
2. Imports - buying goods from abroad
3. Exports - selling goods abroad
4. Remittances - money from relatives abroad
5. Tourism - visitors exchanging for Uganda Shillings
6. International business - 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.

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

She needs to know:

• The exchange rate (1 KES = 29 Shs)
• How much to convert

Real-Life Example: Receiving Money from Abroad

Scenario:
David's uncle in the United States sends 50 US Dollars for school fees.

What happens?

• The money arrives as US Dollars; David needs Uganda Shillings
• Convert USD to UGX at the rate 1 USD = 3,750 Shs

How many shillings will David get? (Lesson 2!)

Summary: What We Learned Today

Currencies:

• UGX, KES, TZS, USD, GBP

Exchange Rates:

• Value of one currency compared to another
• Change every day; found in banks, forex bureaus, newspapers

Why Convert:

• Travel, trade, business, remittances, tourism

Key Money Vocabulary to Remember Today

• Currency - money used in a country
• Exchange rate - value of one currency vs. another
• Forex bureau - place to exchange currencies
• Convert - change one currency to another
• Remittance - money sent from relatives abroad
• Import/Export - buying/selling goods abroad

Looking Ahead to Tomorrow's Lesson

Lesson 2 Preview:

• Learn to convert Uganda Shillings to other currencies
• Calculate Dollars, Pounds, or Kenyan Shillings received
• Use division for these conversions

Remember to bring:

• Your exercise book and today's exchange rate chart

Quick Assessment on Currencies and Exchange Rates

Answer in your exercise book:

1. Name Kenya's currency.
2. What does an exchange rate tell us?
3. How many UGX equal 1 US Dollar?
4. Give one reason to convert UGX to KES.
5. Which is worth more: 1 USD or 1 GBP?

You have 3 minutes!

Homework: Money Conversations at Home

Assignment for tonight:

1. Ask a parent or guardian about foreign currency they've used and why; write 2-3 sentences
2. Find a newspaper's exchange rates for 1 USD and 1 GBP, if possible
3. List 3 reasons to convert Uganda Shillings to another currency

Expected time: 15-20 minutes