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exchange rate question

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  • 25-11-2004 5:55pm
    #1
    cubix
    Registered Users Posts: 2,161 ✭✭✭


    I think the sterling to euro rate at the moment is about 68-69p to the €.The thing is when I bought something for £20 it worked out at €28 something. The thing I cant understand is, it will cost you €1.32 aprox to get £1 so x that 20 and I should only be charged €26.40. Yet checking it through Paypal/ my cc it comes out about the same as the higher figure €28. What am I missing as I dont think either of these two charge anything on top of what ever rate they give

    Thanks


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    #2
    Nuttzz
    Registered Users Posts: 3,774 ✭✭✭Nuttzz


    68-69 might be the offical rate, but the consumer rate is higher, today it was .7095 to the euro in BOI


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    #3
    cubix
    Registered Users Posts: 2,161 ✭✭✭cubix


    Could well believe it Nuttzz,but what I am trying to figure out where I am going wrong with my calc's.


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    #4
    dmeehan
    Registered Users Posts: 2,455 ✭✭✭dmeehan


    the official rate may be 0.69 but commercial banks make money on fx by using a spread ie sell at high price, buy at low price

    so you "buy" £20 but they charge you 0.68 (less £ for your €)
    if you sell it back to them they will charge you .70 (more £ for €)

    in this example the £20 costs €29.41
    if you sell them back the £20 note @ .70 you will only get €28.57

    hope that helps


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