I start with an excel file with the contents in each row:


Then I export this file as a CSV file and save it as ANSI format (which from what I have read is same as US-ASCII). When I try to open it with excel again, it correctly decodes the characters. If I import this file to a program like Toad (Oracle DB client) I get garbage as expected. How is it possible that Excel is able to correctly deocode these characters while others cannot ?


ANSI format does not mean US-ASCII. It means that the file is saved in one of the ANSI Code pages. Depending on your locale the default codepage might be different. Your text was probably encoded in the Windows-1254 codepage.

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