The exchange house is a business that make it easy for their clients to be able to exchange one type of currency for another. Most of them are well known throughout the world, since each one is adapted to the language of each country because they do not have a universal language.
Are exchange housesThey can generally be found in places where there is security and the necessary trust such as banks, train stations, airports and travel agencies. This will allow the person who is going to travel from one country to another, to be able to make the currency exchange where they are and adapt it to the place where they are going to go.
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It may also be the case that you want to change for a currency that has a higher hierarchy and thus invest the money to avoid the devaluations that the local currency may suffer with respect to the other.
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In this article you will find:
Currency exchange features
Among the main features are:
·In this place an exchange rate is charged that is in accordance with the market, adding the commission service that is not shown in an explanatory way to the client all the time.
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·In these entities only coins and bills are not exchanged, sometimes they also buy and sell papers such as securities in foreign currency to be exchanged in cash.
Like any international market, the value of the currency varies depending on the changes of the day.
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They are located in towns where tourists pass and have a connection with large financial institutions.
Activities carried out by the exchange house
Any entity can freely determine the fee for the consideration they charge for the service, based on costs and policies. In the same way they can agree that in the execution of their purchase and sale operations, the currencies are granted on a deferred basis, which means that the settlement will take place after two business days banking.
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Between the different activities carried out by exchange houses can be mentioned:
·Purchase and sale of tickets, traveler's checks that are denominated in foreign currency and metallic pieces.
·Purchase of documents and promissory notes in foreign currency that are in charge of banking entities.
·Purchase and sale of foreign currency through fund transfers on bank accounts.
·Receive or send transfers in foreign currency or national currency inside and outside the country.
Who is an exchange house addressed to?
Among the most common we can identify the following:
Retail service
When it comes to natural users, such as tourists who always need to change to the local currency where they are. The amount that these must change are mostly small, like those that make shipments to relatives who are in another country.
Corporate services
These are the transactions that cover the requirements of buying or selling the currencies of a company, such as This is the case of exporters who receive their income in dollars and require that they make the change to their currency local. Generally, its funds are used to finance its productive activities.
Procedures at the interbank level
They are the operations that are carried out between banks and exchange houses with large amounts of money.
Advantages of using the digital exchange house
Nowadays with the technological advancement, there are a lot of benefits, both for corporations and for users. The financial industry is not the exception, therefore, they have been commissioned to make certain modifications in the regulations for the various existing financial products such as investments, loans and all kinds of changes.
Among its most relevant advantages, the following can be highlighted:
Speed
Previously, the process of changing dollars was very extensive, since the time can vary depending on the distance and the The route between the exchange office, the ATM and the place where the person who will make the operation. This could take up to an hour of time, while, by digital means, the change can be made in less than 20 minutes.
Accounting record
It is of utmost importance that every person or company keep all their accounting records in order and in an orderly manner. In these physical entities they have the obligation to deliver a receipt, which could be easy to lose.
The digital exchange gives each user the opportunity to access the history of all their exchange operations and sends the proof of your invoice to your registered email automatically, guaranteeing speed and security in the service.
Self service
To carry out operations in a digital exchange, it is not necessary to go to a certain place to be attended, since it can be done from anywhere there is internet.
This will avoid having to wait for the availability of an ATM or having to walk down the street with a large sum of cash. This system also has in its favor, that it is possible to make comparisons of the changes and what is you can receive, because in this online platform, this exchange rate and the calculator are available.
It is very important to note that this system allows you to make the desired change without having to make a interpersonal interaction and operation can be done comfortably anywhere the user is find.
Saving
Apart from saving time, in the same way in this system you can see the competition that exists in the offers that They mostly exceed those offered by banks, their variation will depend on the amount that is going to change.
Purposeful meetings
One of the fundamental factors of this digital system is that the operation is carried out through bank transfers and a platform is used that guarantees cybersecurity that protects data from the users.
