Find solution
How do money changers make money?

How do money changers make money?

  • Answer:

    The exchange rate is a little bit lower or a few cents higher than the market price. The latter usually applied if you bargain or smart enough to figure out the market rate,then they pay you few cents more just to get your foreign money. The more foreign money they accumulate the more they make money because they sell it to the "black market" meaning nothing is taken off of it compared if you go to the bank ang acquire some which is normally selling/exchanging your foreign money is lower, and buying foreign money is more. Selling at the black market is how they make their money.

confused... at Yahoo! Answers Visit the source

Was this solution helpful to you?

Other answers

They do it by buying and selling at few points above or below the actual rate. For example: When I was in Peru, the money changers would buy Dollars at 3.25 Soles (Peruvian currency). So for one buck you'd get 3.25 in Peruvian money. If you turned right around and wanted your dollar back, they'd only give you about 95 cents. That is a little more specific to Peru, where the dollar is stronger. Europe would be the other way around cause the Euro is stronger than the dollar and so on. The other thing they do is just hold on to the cash until the market weakens or strengthens in one way and change back. This works better with larger sums. Take 1000 euros and buy 1250 dollars, for example. Then they wait till the dollar gets strong, and use 1250 dollars to buy 1500 euros, and so on.

They yield higher rate than what is supposed to be the amount.

Mevis

Related Q & A:

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.