If you calculate a conversion from a currency with a rounding amount of low intrinsic value to a currency with a rounding amount of high intrinsic value and then convert the result back to the original currency, a reconversion error may occur, that is the final result may slightly differ from the original input value.
Consider for instance a conversion from South Korean won to euro with a EUR/KRW rate of 1,719.47, the South Korean won rounded to 1 KRW and the euro rounded to 0.01 EUR.
The South Korean won rounding amount has a lower intrinsic value than the euro rounding amount (1 KRW ≈ 0.0005812 EUR < 0.01 EUR), so if you convert a KRW amount to EUR and then back to KRW, the final amount may differ from the initial amount:
| 325,000 KRW = 325,000 / 1,719.47 EUR = 189.01173035877… EUR ≈ 189.01 EUR |
| 189.01 EUR = 189.01 * 1,719.47 KRW = 324,997.0247 KRW ≈ 324,997 KRW |
Conversely, if you calculate a conversion from a currency with a rounding amount of high intrinsic value to a currency with a rounding amount of low intrinsic value and then convert the result back to the original currency, reconversion errors never occur.
Considering a conversion from euro to South Korean won, you would for instance have:
| 270.00 EUR = 270.00 * 1,719.47 KRW = 464,256.9 KRW ≈ 464,257 KRW |
| 464,257 KRW = 464,257 / 1,719.47 EUR = 270,0000581574555… EUR ≈ 270.00 EUR |
Reconversion errors may occur when you calculate a conversion and then select another display: Currency Assistant in fact always considers the active display as input display and automatically calculates a new conversion when you activate another display.