What is the cheapest way to buy Mex Pesos?
Me again, from reading the different post, I see you need some cash to pay for different things like Autopista and some camping or else. What would be best way to buy Mexican Pesos? From a Canadian pe...
Forum Discussion
Kidoo wrote:
I just checked today at my bank. The rate here at the bank is 11.24 but the today's rate on the money market is 12.66
The reason for this 'spread" is that you are a retail buyer/exchanger of currency. As a retail buyer/exchanger of foreign currency, you have no choice but to buy/exchange through what is called "a broker". Banks buy and sell currencies between themselves, and account for the World's largest traders of currency. So, when a bank wants to buy/sell currency, they will never go through a "broker", but will do something called "interbank" dealing, or direct transactioning. Unfortunately, for the ~~ 5+ billion individuals of the world who are not owners of banks, we all have to grovel with the myriad "currency brokers" of the world, who will skin you alive (ie. take seemingly large commissions on your transaction). There is NOTHING you can do about it.....unless(!) you are dealing with tens of $millions, hundreds of $millions, $billions, or $trillions in currency (ie. between banks or as a national treasury of any particular country).
The reference exchange rates published by all the financial institutions, is called the "daily reference exchange rate". This is done at fixed times during the day by what are called "Central Banks", using a complex formula (usually based on extremely high volumes of currency buying)...
So, we lowely peons who exchange pennies (metaphorically speaking) are relagated to dealing with currency excange brokers. Currency exchange brokers come in hundreds of flavors; among them: street exchangers, retail banks, ATM machine owners, street-corner exchange kiosks, etc, etc, etc, etc, etc...
