If I have 100 USD and I go to a bank somewhere in Europe and ask for an exchange in euros, how do they just accept it?
Like here’s my paper money that’s technically worthless to you, now give me your paper money that’s valuable to you.
In: Economics
Banks are a middle man. You want to sell USD and there is someone that wants USD. They give you a little less than the official exchange rate and charge someone else a little more.
They make money off the spread between the two.
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