Exchange rates and transfers Practical guide
Reference exchange rates and a bank’s buy and sell prices
Read the buy and sell columns correctly, calculate what an exchange costs after fees, and compare a bank quote with the reference rate.
A price dashboard might show close to ten Moroccan dirhams per dollar while your bank displays two different figures. Each number answers a different question. A reference rate helps you estimate value and follow a currency over time. A bank quote tells you what you will pay or receive on a specific transaction. To compare them, start with the direction of the exchange, the unit being quoted and the fees included in the final amount.
Which column applies to you?
On a board written from the bank’s perspective, the buy rate is what it pays when it buys foreign currency from you. The sell rate is what you pay when it sells foreign currency to you. If you bring cash dollars and want dirhams, ask how many dirhams the bank pays for your dollars. If you need dollars for a trip, ask how many dirhams it costs to buy the amount you need.
An app can use “buy” from the customer’s perspective. Read the surrounding label or ask for both currency amounts rather than relying on the column title. Check the unit as well. A board that quotes 6.50 dirhams per 100 yen implies ten times that value for 1,000 yen at the displayed price.
A worked example with a spread and a fee
Suppose the reference rate is 10.00 dirhams per dollar. A bank buys dollars at 9.90, sells them at 10.10 and charges a flat 15 dirhams per transaction. The figures are hypothetical.
| Transaction | Before fee | Final amount in dirhams |
|---|---|---|
| You buy 200 dollars | 2,020 | You pay 2,035 |
| You sell 200 dollars | 1,980 | You receive 1,965 |
The difference between the bank’s quoted rates is 0.20 dirhams per dollar. That is its quoted buy–sell spread. The cost of the purchase relative to the reference is a separate calculation. At the reference rate, 200 dollars is worth 2,000 dirhams. You pay 2,035, a difference of 35 dirhams. The difference consists of 20 dirhams from the bank’s sell price and 15 dirhams from the fee. Your effective purchase rate is 2,035 divided by 200, or 10.175 dirhams per dollar.
Why does the method change the price?
Cash at a branch, app exchanges, card conversions and international transfers can have different quotes and fees. A service may also use different prices by amount, channel or account type. Some quotes are estimates until you enter an amount. Others expire after a short period. Compare the same channel at roughly the same time and ask whether the fee is added to your payment or deducted from what you receive.
Check the date of the reference figure. The European Central Bank, for example, publishes its reference rates for information on ordinary working days according to its own calendar. Its latest published observation can predate a quote from your bank over a holiday or early in the day.
Compare the final amount
- Use the same currencies, amount and delivery method for each quote.
- Ask for the total you pay when buying or the net amount you get when selling.
- Check the expiration time and any minimum amount before you decide.
- Use the Souq Al Yom currency converter for a reference estimate, then compare it with the provider’s final total.
When the labels are ambiguous, ask for a sentence with both amounts, such as “I pay 2,035 dirhams and receive 200 dollars.” That makes the direction and fee treatment easier to check before you confirm.