If the currency exchange shop in Bulgaria exchanged my Euros to Lev at a rate of €1 to 1.96lev, which is currently the exact market price, how do they make their profit?
In: Economics
What rate do they use to exchange Lev to Euros? There almost certainly is some spread. It may also be biased towards one of the exchange directions – for instance, if exchange shop expects rate to move a certain way in the near future.
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