Why the exchange office rate differs from the rate on this site
The rate on the board, the central bank rate and the rate at the counter are three different numbers. Here is where the gap comes from and how to work out what it costs you.
You open a website, see the dollar rate, go to an exchange office — and the number there is different. What is more, it is higher when you buy dollars and lower when you sell. This is neither a trick nor a mistake: each rate has its own purpose, and it helps to know which one applies to you.
Three different rates
The official rate is set or published by the central bank. It is used for accounting, taxes and customs, but you usually cannot buy currency at it directly. The market, or interbank, rate is the price at which large banks trade currency with each other in big amounts. It is the one most websites and apps show, including the board on this site. The third is the rate at a bank or exchange office counter. It always consists of two numbers: one for buying and one for selling.
Where the gap comes from
An exchange office earns on the difference between its buy price and its sell price — this is called the spread. It also pays for rent, security and cash collection, and it carries the risk that the rate will move while the cash sits in the safe. All of this is built into the spread. The smaller the town, the rarer the demand for a currency and the more exotic the currency itself, the wider the spread usually is.
How to work out your loss
Take the exchange office's selling rate and compare it with the market rate at the same minute. The difference divided by the market rate is your hidden fee, in percent. For example, if the market rate is 100 and the office sells at 101.5, you pay about 1.5% on top. On a thousand dollars that is already noticeable money. Our converter has a line with an approximate exchange-office rate — it shows exactly this order of difference.
How to pay less
Compare several banks: in many countries of the region banks publish their rates in their apps, and the difference between them can be significant. Exchange large amounts in one go rather than in small parts — some offices give a better rate from a certain amount. Avoid exchanging at airports and tourist spots. And remember that when you pay by card abroad, the rate is set by the payment system and your bank, not by an exchange office — it is worth checking in advance.