Currency exchange can be confusing and might even seem overwhelming, but we are here to help make your exchange easy. Here is how currency exchange works.
Often times when looking up currency exchanges rates, travelers rely on Google or currency exchange apps. The rates found on these sources are considered “Market rates” or “Interbank rates” which reflect the actual value of a currency. Market rate or interbank rates are a really great snapshot of how a countries economy is performing against others, and consider factors such as GDP, inflation, debt, trade imports and exports, and the political stability. The only problem with these rates is that they are not obtainable to travelers. In currency exchange, the physical form of currency is considered to be a product, and like all other products, physical currency is marked up above its actual value. Currency, similar to other products has a manufacturer, a distributor and a seller. In this case, World Wide Money Exchange serves as a retail seller of currency and also purchases currency at a margin, in order to have it readily available for travelers. The difference in currency and other products is that currency values are always changing. The rates available to customers looking to purchase currency are considered the “Sell” rate, as the currency exchange is selling currency in this type of transaction. A fair sell rate typically includes an 8%-12% margin, and up to 15% or currencies considered to be exotic.
When comparing exchange rates between currency exchanges and banks, make sure to asking for the sell rate. Most currency exchanges will hold a fee in additional to the exchange rate. In addition, it is important to ask which denominations the bank or currency exchange carries to ensure that you are being given notes that are easy to spend. Some currencies, the Euro for example, has high value bills. Their 200 and 500 Euro note may be difficult to spend if a business abroad is not able to make change for a small purchase. World Wide Money Exchange carries a mix of denominations for easy spending.