Base currency is the default currency set for your Magento ecommerce store. It is used to set up product price in the backend. What this means is, if you’ve got USD ($) as your base currency, all the products prices in the backend will be in US dollars.
You can set scope for the base currency to either –
- Global – The base currency applies to the whole Magento instance.
- Website – The base currency applies to different websites in the Magento instance.
You’d ask what happens if you’ve got different stores for different countries? For that, you’ll need to set up display currencies. As shown in the example illustration, US dollar ($) can be the global or website level currency.
To display product price in any other currency, follow our tutorial series on how to configure currency settings and how to change display currency symbols in Magento 2.
Magento 2 will calculate the display currency by multiplying the base currency and current conversion rate. For example, the product price is $10 and you need the product price to be displayed in sterling pound –
Display Product Price = Product Price in Base Currency * Conversion Rate
Display Product Price = $50 * 1.32 = £7.59.
You can configure Magento to automatically update conversions rates by following steps in this tutorial.