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Sterling. We buy we sell

katy39 · 2017-10-18 09:56:23

Hi all, With the risk of sounding a bit thick can someone explain how this works. I was in the Bank and on the board it said WE SELL WE BUY GBP £ 0.823 0.874 How can you sell for less than you buy ?

18-10-2017 10:56am

#1

katy39

Registered Users Posts: 117 ✭✭

Join Date: April 2010

Posts: 59

Hi all, With the risk of sounding a bit thick can someone explain how this works.
I was in the Bank and on the board it said
WE SELL WE BUY
GBP £ 0.823 0.874

How can you sell for less than you buy ?

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Comments

#2 18-10-2017 2:33pm

Spocker

Moderators Posts: 6,864 ✭✭✭

Join Date: February 2004

Posts: 6075

We sell @ £0.823/€1 which translates "We will sell you £1 for €1.21"
We buy @ £0.874/€1 which translates as "We will give you €1.14 for each £"

The bank make money on the fact that banks can exchange currency among themselves (know as the inter-bank rate) at around £0.89/€1, so they make money on if they buy or sell you sterling, and the buy rate is usually less favourable than the sell rate

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