BusanBeautyBlooming
Fri Jul 19 2024
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5 answers
1069
Why do banks mark up exchange rates?
Could you elaborate on the reasons why banks tend to mark up exchange rates? Is it simply a matter of profit maximization, or are there other factors at play? I'm curious to understand if it's due to operational costs, hedging risks, or if there's a more complex economic rationale behind this practice. Additionally, does this markup vary depending on the currency pair or the size of the transaction? And how does it compare to the exchange rates offered by other financial institutions or cryptocurrency platforms? Your insights would be greatly appreciated.
