Why Do Exchange Rates Not Match What's In The News?
14 February 2017, 16:20 | Updated: 14 February 2017, 17:12
Why is there a difference between the reported exchange rate in the news and the exchange rate you get at the back when you go to change money?
Mystery Hour Question
Why is there a difference between the reported exchange rate in the news and the exchange rate you get at the back when you go to change money?
Dave, Sussex
Answer
Name: James O’Brien
Qualification: Know it all
Answer: The banks have to make a profit on the exchange. It’s like the cash points that charge you 1.50 to take the money out. The reason there is a disparity between the official exchange rate and the one that you get when you go into change money is because the person who is changing money gets to keep a bit.
