When do banks review their international exchange rates?I bank with RBS and was wondering how often they change the exchange rates for foreign currency for banking customers - I'm paid in US$ and convert into £ Sterling - Anyone know how often they review their rates? | |
Banks review their interest rates as often as they see fit to run their business; this could be by the minute, hour, day etc. Exchanging money can be a costly business if poor timing ensues, particularly when currencies are fluctuating signifcantly.
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My understanding is that foreign currencies purchased through are bank are traded on the interbank fx market. Like any market, the price of the product fluctuates as 'orders' for the currency are placed. The exchange rate or 'spot rate' will change throughout the day...
I believe small amounts go through on the rates set daily .. large amounts will go through at the spot 'market rate' ..
