What a forex-bureau rate is

A forex-bureau rate is a retail price for cash dollars. It includes the dealer's margin and the cost of holding cash, so it is higher than the interbank rate. A bureau quotes a buying price below the mid and a selling price above it. This page explains why bureaux differ and why a rate collected by an aggregator may be stale.

A retail price, not a wholesale one

A bureau buys dollars from banks or other sources at a wholesale price, then sells them to customers at a higher price. The difference is the bureau's margin, which covers rent, staff, security and profit.

The bureau also holds cash, which costs money. Cash must be stored, insured and transported. These costs are passed on to the customer, so the bureau rate is always higher than the interbank rate.

Buying below, selling above

A bureau quotes two prices: the buying price and the selling price. The buying price is what the bureau pays for dollars; the selling price is what it charges. The buying price is below the mid rate, and the selling price is above it.

The spread between the two is the bureau's gross margin. A wide spread means the bureau is charging more for the service; a narrow spread means it is more competitive.

Why bureaux differ

Bureaux set their own prices. Location matters: a bureau in a busy commercial area may charge more because demand is high and rent is expensive. A bureau with lower overheads may charge less.

Competition also matters. If several bureaux are nearby, they may undercut each other. If a bureau has a captive market, it may charge more. The freshness of the quote also matters: a bureau that updates daily will reflect the current market, while one that updates rarely may be stale.

Why an aggregator quote may be stale

An aggregator collects quotes from bureaux, but it does not force them to update. A bureau may leave the same board for days, and the aggregator will show that old quote as if it were current.

This site reads each quote's own last-updated time and drops any older than a week. That is why the bureau median may be based on only a few fresh quotes. A stale quote is not necessarily wrong, but it is not a reliable guide to today's price.

What to check before an exchange

Before exchanging money at a bureau, check who is quoting: the bureau itself, or an aggregator that may be showing an old price. Ask for the current board, and confirm the price for your amount.

Also check whether the price is for cash or transfer. Cash is usually more expensive because of handling costs. A large amount may get a better rate; a small amount may not. And ask about any fees or commissions, which may not be included in the quoted rate.

The rate you pay is the selling price

When you buy dollars, you pay the selling price. When you sell dollars, you receive the buying price. The difference is the bureau's margin, and it is the cost of using a bureau.

The interbank rate is a reference, not an offer. The bureau rate is the offer, and it is always higher for buying dollars. The gap between the two is the premium for cash, and this site measures it.