![]() ![]() Bureaux de change rarely buy or sell coins, but sometimes will at a higher profit margin, justifying this by the higher cost of storage and shipping compared with banknotes. Some bureaux offer special deals for customers returning unspent foreign currency after a holiday. Some bureaux do not charge commission but may adjust their offered exchange rates. Commission is generally charged as a percentage of the amount to be exchanged, or a fixed fee, or both. The business may also charge a commission on the transaction. This business model can be upset by a currency run when there are far more buyers than sellers (or vice versa) because they feel a particular currency is overvalued or undervalued. If the bureau de change buys £1 from a consumer for €1.40 and then sells £1 for €1.60, the 20 pence difference contributes to expenses and profit. So if the spot price on a particular day is €1.50 to £1, in theory, £2 will buy €3, but in practice this would be hard if not impossible for average consumers to get. Quite often the terms "buy" and "sell" are used the other way round by a bureau de change, and the buy rate may seem higher that the sell rate: in such cases, it means "we buy/sell our local currency at the rate showed" (examples from Google Images). For example, a UK bureau may sell €1.40 for £1 but buy €1.60 for £1. The bureau sells at a lower rate from that at which it buys. The rate at which a bureau will buy currency differs from that at which it will sell it for every currency it trades both will be on display, generally in the shop window. The exchange rates charged at bureaux are generally related to the spot prices available for large interbank transactions, and are adjusted to ensure a profit. In setting its exchange rates, the business would keep an eye on changing market conditions, as well as the rates quoted by competitors, and may be subject to government foreign exchange controls and other regulations. ![]() It may also charge commission or fee on the purchase or sale. Some of the major players include HSBC, Travelex, JPMorgan Chase & Co., Wells Fargo, and Bank of America.Ī bureau de change is a business which, in competition with other similar businesses, makes its profit by buying foreign currency and then selling the same currency at a higher exchange rate. They are particularly prominent at travel hubs, although currency can be exchanged in many other ways both legally and illegally in other venues. for example, "foreign currency exchange office".Ī bureau de change is often located at a bank, at a travel agent, airport, main railway station, large supermarket branches, and anywhere else where there is likely to be a market for people needing to convert currency. In the United States and English-speaking Canada the business is described as "currency exchange" and sometimes "money exchange", sometimes with various additions such as "foreign", "desk", "office", "counter", "service", etc. ![]() Since the adoption of the euro, many exchange offices have started incorporating its logotype prominently on their signage. Originally French, the term bureau de change ( pronounced ) is widely used throughout Europe and French-speaking Canada, where it is common to find a sign saying "exchange" or "change". JSTOR ( March 2021) ( Learn how and when to remove this template message)Ī bureau de change (plural bureaux de change, both / ˌ b jʊər oʊ d ə ˈ ʃ ɒ n ʒ/ BURE-oh də SHONZH British English) or currency exchange ( American English) is a business where people can exchange one currency for another. ![]() Unsourced material may be challenged and removed. Please help improve this article by adding citations to reliable sources. dollars, we may apply a rate we have established without prior notice to you.Īdditional terms specific to outgoing wire transfers or consumer international wire transfers are contained in your wire transfer agreements.This article needs additional citations for verification. If we complete a foreign currency exchange on your behalf, such as exchanging a foreign currency incoming wire transfer into U.S. The exchange rate may vary among customers depending on your relationship, products with us, or the type of transaction being conducted, the dollar amount, type of currency, and the date and time of the exchange, and whether the transaction is a debit or credit to your account. The exchange rate we use will include a spread and may include commissions or other costs that we, our affiliates, or our vendors may charge in providing foreign currency exchange to you. You should expect that these foreign exchange rates will be less favorable than rates quoted online or in publications. We may make a commission providing foreign currency exchange services to you. The foreign exchange rates we use are determined by us in our sole discretion. ![]()
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