![]() ![]() There is a cost to doing this, which means that the value of the currency is affected to cover all of said cost.Īt Travelex, we work to provide you with the best value on your foreign currency as possible. There are a lot of processes and people involved in providing currency into your hands. The market (or spot) exchange rate, is the rate at which banks exchange currencies. Why are tourist money exchange rates not the same as the market spot rate? ![]() These movements can be caused by supply and demand, as well as by political and economic events. Why do currency exchange rates fluctuate?Ĭurrencies constantly move up and down against each other as financial markets change. Spread – This is the difference between the buy and sell rates offered by a foreign exchange provider such as us.In the business, this is sometimes referred to as a ‘spot rate ![]() It is the rate banks or large financial institutions charge each other when trading significant amounts of foreign currency. Spot rate – This is known more formally as the ‘interbank’ rate.For example, if you were heading to Europe, you would exchange British pounds for euros at the sell rate. ![]()
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