Friday, 11 May 2018

Currency exchange ...

I got a great rate ...

Did you really?

At best you can save €20 on a £1000 over the counter. These are capped at £2500 over the counter for money laundering purposes. Lets be honest who wants a close encounter with a sniffer dog at the airport, if your pockets are full of cash, when you could be exploring duty free at 4am ...

However the debates on the forums about the rates you can get, and what card to use are very entertaining ...

For Info: Someone got 1.05 at an ATM in PapaD yesterday, they would have got 1.11 over the counter at the National bank nearby.

The only people who loose are those (us) who have to change money, those who do not have the Euro as their own currency. Thats why the currency boards have got smaller in your local bank, but they still have to make their money somehow ...

Your hard earned cash ...
The currency exchange goes like this ...

You have money ()
They have the currency you want ()
They will sell it to you at a rate they want to ()
You want to purchase it ()

Its a sales transaction ...

They bought the money at a far better rate than they want to sell it to you ()(They win)
You want to purchase it a far worse rate than they bought it (X) (You loose)
They charge you 2 - 2.5% for the purpose of making someone them a profit (X) (You loose)
If you are on a 0% commision deal you think you win ()
However the rate is poorer than it could be (X) (You loose)

What you got back ...
So by the time you have paid the accommodation tax and had a beer, and a cocktail for SWMBO there is not much left.

Down the back of the sofa ...
The moral of the story, is that you loose money, but in some cases the couple of cents left over might come in handy one day, if you find them down the back of the sofa ...

Weather update: If you are flying today Storms have passed through overnight ...

Power cuts: Will continue between 8am & 2pm today and over the weekend.

Previous Blog: The Skiathos Palace Cup ...

2 comments:

  1. I find it's better to do an online bank transfer with a reputable online company. In a nutshell, they just match up you (wanting Euros) with someone else (wanting Sterling). They do the transfer for you bypassing the banks exchange system and you get the proper market rate with only a small fee.

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    Replies
    1. I know what you mean Barty. In the good old days, i used to work for a bank, so to me its great fun watching the amateur currency experts, sharing their expertise.
      But if you are moving a few pounds, for example 'buying a property' there can be better ways to do it via the high street ...

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