Bureau and bank boards

A bank or bureau board shows two rates: the buying rate and the selling rate. The spread between them is the real cost of exchanging cash. A board whose date changes while its numbers never do is not a live quote. Before relying on any published rate, check who quotes it, for what amount, cash or transfer, and whether it is dated today.

The buying rate and the selling rate

A bank or bureau board shows two rates for each currency: the buying rate and the selling rate. The buying rate is what the institution will pay for dollars; the selling rate is what it will charge. The selling rate is always higher than the buying rate.

The spread between the two rates is the institution’s margin. It covers the institution’s costs and its risk. The spread is the real cost of exchanging cash, and it is the figure a reader should compare across institutions.

The spread is the real cost

The spread is the difference between the buying rate and the selling rate. It is the institution’s margin, and it is the price of exchanging cash. A narrow spread means the institution is charging less for the exchange; a wide spread means it is charging more.

The spread varies by institution, by city, and by amount. A bureau in a small town may quote a wider spread than a bank in Nairobi, because it has less competition and higher costs. A large transaction may get a better rate than a small one, because the institution earns more from the spread.

A frozen board is not a live quote

A board whose date changes while its numbers never do is not a live quote. The date stamp moves, but the rates are the same as they were weeks ago. That means the institution has not updated its board, and the rates are stale.

One bank board published online has printed the same buying and selling figures for months while its date stamp moves. This site flags that board as frozen rather than quoting it. A frozen board is worse than no board at all, because it looks live but is not.

What to check before relying on a rate

Before relying on any published rate, check who quotes it. A rate from a bank is different from a rate from a bureau. A rate from a website is different from a rate on a board. Each has its own terms.

Check for what amount the rate applies. A rate for a large transaction may be better than a rate for a small one. Check whether the rate is for cash or transfer. Cash rates are often worse than transfer rates, because cash handling costs more. Check whether the rate is dated today. A rate without a date is not a rate you can rely on.

The board is not the whole story

The board shows the buying and selling rates, but it does not show the fees. A bank may charge a commission on top of the spread; a bureau may not. The total cost of exchanging dollars is the spread plus any fees.

The board also does not show the amount limits. A rate may apply only to amounts above a certain threshold, or only to amounts below it. The board is a starting point, not the final word. A reader should ask for the total cost before deciding.

How to use a board

To use a board, first find the buying and selling rates for the currency you want. Then calculate the spread: the difference between the two. That spread is the institution’s margin. Compare the spread across institutions.

Then check the fine print: the amount, the payment method, and the date. Ask if there are any fees on top of the spread. The total cost is the spread plus any fees, and that is the figure that matters.