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Most often when people travel they need local currency. Or maybe you are sending money abroad, then you also need to convert currency. In addition, currency exchange occurs when you transfer money between bank accounts. During each such operation, the same thing happens - you buy (or exchange) currency.
So, what do you need to know about currency exchange and what is the most convenient way to exchange them on services such as Exchange - Rates. Well, we will tell you everything in this article.
How does currency exchange work?
Currency exchange is simply the practice of exchanging one currency for another. For example, if you have US dollars and wish to obtain euros, you sell them and purchase euros.
The exchange rate is the "price" at which currencies are bought and sold, and it is normally established by the market (which means that supply and demand for a specific currency impacts its price). money rates fluctuate continuously, so you may convert money at one rate today and see an entirely different one the next. Rates will keep you up to date on the current pricing conditions.
When do people exchange currency?
People often convert currencies when they desire to maintain money in another currency or move money between accounts in various currencies.
Currency conversion is sometimes undetectable and occurs without any further steps, such as when you send money from the United States to Ukraine or make purchases on overseas websites.
How much does currency exchange cost?
Currency conversion prices differ greatly amongst services that offer this service. If you exchange money at your bank rather than the airport, you will most likely obtain a better (useful) rate.
Aside from these possibilities, you may be charged a fee for executing a financial transaction known as a "currency exchange." Making an international money transfer using your bank card for shopping overseas or withdrawing cash from an ATM abroad are examples of these transactions.
Why can the currency exchange rate differ in different banks?
After the national bank sets the official exchange rate, each local bank or financial institution begins to monitor and analyze how profitable it is to buy/sell, for example, the dollar on the interbank foreign exchange market. The bank then takes into account its costs and determines the exchange rate. As practice shows, the bigger the bank, the more profitable it is to buy or sell currency. As a rule, large banks have easier access to interbank, and therefore their exchange rate will be better than the offers of small banks or other financial institutions.
It should be borne in mind that the exchange rate in different banks may differ in cents, and not in dozens of monetary units. Therefore, if you need to exchange a small amount, for example, 500 dollars or euros, then you should not dive deep in search of profitable offers. On such an exchange, you can lose at most 50-100 conventional units of the local currency. You should look for the most favorable exchange offers if you need to exchange a large amount of money. This mostly applies to businesses, not ordinary citizens.
What is the most efficient way to swap currency?
There are several physical and online money exchange options. The method and location in which you purchase foreign currency is determined by your current demands. However, because conversion rates and fees differ by method, it's important to pay attention to the exchange rate and any additional expenses at each transaction.
The most common ways of exchanging money are:
- Online currency exchange services. This is a convenient way to buy foreign currency because you don't have to leave your home, and you can choose the service that offers the best exchange rate.
- At currency exchange points.
- In your bank. You can exchange currency at a local branch, online, or withdraw currency at an ATM, which accept Mastercard or Visa cards, and as you know, Visa cards are accepted in 150 countries. However, this service may only be available in certain locations and with a limited selection of currencies.
- At airport kiosks and hotels, although this is one of the most expensive ways to exchange currency, due to usually unfavorable exchange rates.
The easiest way to find up-to-date currency exchange information is to use Rates.
How to get up-to-date currency exchange information from Rates?
Rates allows you to get the most up-to-date information about currency exchange online. To find information about currency exchange on Rates, all you need to do is go to the page and select the currency you are interested in. You always see the current exchange rate and know exactly how much you will get after the exchange.
Why is it better to look for the current exchange rate on Rates?
It is transparent
You can see the official rates of banks, so you can be sure that you will get exactly the services you are looking for.
It is safe
The lack of involvement of third-party and gray currency exchange providers makes the exchange safer and more profitable.
It is fast
You can instantly see current exchange rates in all banks and official financial institutions.
It is convenient
You can access currency prices from your PC, tablet, or phone. The service works around the clock. So you can always have the most up-to-date information. You can use convenient filters and sort by currency or institution to find the best offer that suits you at the moment.
Conclusion
Whether we are traveling abroad or sending money home, currency exchange has become a part of our daily lives. However, because of the number of available exchange options, we often end up paying more for currency exchange than necessary.
Rates is the easiest and fastest way to get information about the price of any currency without involving third parties. You have the opportunity to choose between all current currencies and get the most favorable rate, while maintaining full control over your currency transactions.