HOW to Read the Currency Exchange Board!
Today we are going to learn, how to read the currency exchange board, which column to look at, buy or sell? Firstly, you learn the reason behind it. Secondly, where to look at in your own country. Thirdly, where to look at, when you are in a foreign country. Depending on where you are, there is a difference!
Buy or Sell? Which Column, Should You Look At?
Assuming, you are in USA, travelling to Singapore, here is what you might see at the exchange board. Singapore Dollar, “WE BUY : 1.327” and Singapore Dollar, “WE SELL : 1.326”.
So, if you wish to change your USD currency to Singapore currency, it means you are buying the Singapore dollar with US Dollar. This makes you the, buyer and the money changer, is the seller! So here, the money changer is selling you the Singapore currency. You should look at the column, that say, “WE SELL”!
Now, let’s look at 2 scenarios!
Pixabay/pexels
Scenario 1
When in US, the trading currency is the US Dollar. It is the default currency that is used to buy things in the country! So, when exchanging money from US Dollar to Singapore dollars. We are buying the Singapore dollars as a product, using the home currency.
While standing outside a money changer or bank, let’s named them as, changers for short. And looking at the display board of currency rates, the rate for exchanging to Singapore dollar, will be displayed under, “We Sell”. The word, “We”, is referring to the changer, and they will sell Singapore dollars to us, at the specified selling rate!
On the other hand, if you are exchanging from Singapore dollars to US Dollar. You are selling the Singapore dollars as a product to the changer! In this case, since they will be buying the Singapore dollars from you using the US dollar, the exchange rate will be listed as, “We Buy”!
Why do we used the word, “We”, instead? That's because, some money changers and banks prefer to just use the word, “Sell” and “Buy”. So, to make it easier to understand, just insert the word, “We”, and the context will be clearer!
Timo Volz/pexels
Scenario 2
When we go over to Singapore, the trading currency is the Singapore Dollars. So, when exchanging money from US dollar to Singapore dollar, the money changer or bank in Singapore, will be buying the US Dollar, as a product using their home currency.
They will display the rate for US Dollar under, “We Buy”. They will be buying the US Dollar, at the specified buying rate.
Mathias Reding/pexels
The Chart
So, even though the action is to exchange US Dollar to Singapore dollars in both cases, we have to look at different columns, when in different countries!
Rates on internet and the actual rates you receive from money changer, are always a little different. Money changer will apply some markup rate to earn profits for setting up their business.
Do scout around your local money changers near you and do some homework to identify which changers in your neighbourhood, give you a better rate!
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https://dollarsandsense.sg/things-to-know-before-heading-to-the-money-changer
https://www.ipacktravel.com/post/what-are-we-buy-and-we-sell-exchange-rates