Why do currency exchange transfer rates differ?

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WITH SO much focus on exchange rates in recent years, more and more clients are trying to track them via the multitude of different media platforms available.

It is important to be aware, however, that currency rates are constantly changing and often printed media such as newspapers and magazines, being subject to print deadlines, are not able to show up to the minute rates.

Generally, the rates seen on web sites, TV news programmes and Ceefax, tend to be mid-Inter Bank rates for a particular currency pair. So, if we take Sterling v Euro, there will be clients trading Sterling into Euros and clients here in Spain, for example, trading Euros back to Sterling.

The mid-range or Inter Bank rate, is a guide to the value of a particular currency pair at a given time, irrespective of which currency in the pair is being bought or sold. Even large corporations trading huge sums are unable to access the quoted mid-range price.

It is also worth bearing in mind that currency markets are extremely fluid and can change very quickly, which is where currency companies such as moneycorp, can help their customers deal with potential market movements.

Some web sites show the tourist rate. This is an indication of what you would receive changing money at a bureaux de change or high street bank and is usually related to travel money sold in the form of cash.

The most effective way to keep a track on the trading rates applicable to your requirement, is by using a broker such as moneycorp. We endeavour to ensure that you are kept up to date with foreign exchange market movements and help you to achieve a great rate of exchange.

moneycorp offer dealing in live spot rates meaning that when you agree the rate of exchange, the currency is booked immediately to be sure that you end up with the agreed rate.

For more information about how moneycorp can help with your currency exchange requirement and international payments, contact our Costa Blanca office on +34 965 725 755 or email [email protected].

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