Exchange Rate Calculation

Upvote:2

Financial papers tend to publish the inter-bank rates used on financial exchanges. That's the base rate on which banks base the price they charge consumers for exchanging currency.

It's the "fairest" rate you can get, though of course you will end up bearing the burden of exchanging the foreign currency you get from your visitor back into your local currency when eventually you do bring it to your bank for deposit.

And I'd deposit it eventually as you never know whether the bank notes and coins you receive will still be legal tender when next you go and visit them in their home country (I still have a stash of left over foreign currency from long ago foreign travel that's now just worthless because of that, I use it as bookmarks).

Upvote:3

I usually agree with people to use an online rate, which we usually randomly select out of an -exchange rate euro to their money- search.
As this is mostly between two well known currencies like UK pound, euro, US dollar or Canadian dollar those are easy to find. Most searches return several results which are close in value and all have a buy and a sell rate or an option for either currency as the base one.

When you find one with a 'we buy' and 'we sell' with quite a difference you will have to go to a value in between two cut out the cost of the middle man.

Some sites also offer a banks or banknotes rate which already is in the middle, but those are mostly comparison sites, not selling sites, which are the better ones for this purpose.

How many sites you find depends on which currencies. It may be that you need to use a third currency like US dollar if no listing includes both of yours.

Upvote:5

Check the central banks involved, they often publish some mid market currency rates. For example ECB

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