What is the Exchange Rate?

The exchange rate refers to the value of foreign currencies against local currency. To buy $1, the amount (exchange sales rate) or £1 can be expressed as the amount to be paid for selling local currency (exchange purchase). There are many parameters included in the exchange rate calculation.
\nIn cases where the market\’s foreign exchange needs are higher than the amount of foreign currency in the country, the exchange rate is high. When this happens, the country\’s currency will become more valuable than foreign currency. Exchange rate fluctuations are frequent in developing countries. This can be caused by problems in economic uncertainties, political reasons and some other different factors.

Why Does Foreign Exchange Rate Different Occur?

The FX rate difference occurs when currency brokers try to meet the demand and supply through different market places and platforms. Each FX asset has a purchase and sale value. If there is an increase in demand for foreign currency, the exchange rate will automatically rise because the currency is in demand. When there is no need for foreign currency, the exchange rate will start to fall as soon as investors in the market move into the sales position. For example, due to political and economic problems in 2018 and 2019, the spread has risen to very high levels. The sudden rises and declines in the dollar have led to a high margin of spread due to financial institution\’s appetite and ambitions to protect their currency positions at the level where they could make a higher profit margin. When spread in the dollar(bid/ask) was 5.69 TL – 5.70 TL the spread on the exchange rate jumped to 5.50 TL – 6.50 TL level in that period.

In order to maximize FX gains, you need to take the number of variables into an account, such as financial and political situations surrounding national and international markets. Once you have positioned yourself for your next FX trade you also need to determine the duration of your trade and the potential gain, potential profit that you project from that trade.

Currency and Spread Differences between Bureau de Change and Banks

Banks undertake their daily operations between 9am and 5pm Monday to Friday. Therefore money transfer transactions take place between those operation hours in Turkey, Albania, Kosova. As for Bulgaria, our transactions could be paid out from any Easypay locations any given day during the week and weekends between 9am till 6pm UK GMT.

It’s easier for central and commercial banks to intervene against unexpected FX rate fluctuations within operation hours. Therefore spread on FX margin is minimal in those operation hours. FX rates may vary from bank to bank. It’s also the same case for money transferring companies when they execute their money transfer transactions.

As money transferring company we, Aktive Uk Ltd, aim to provide the best possible money transferring rates for our customers compared to other money transferring companies in the UK. Banks tend to apply large spread on their currency rates after closing hours in order to protect their positions against any fluctuations that may take place. Therefore any rate comparison done after 5.30 pm would not reflect the true currency rate in Turkey as well as other countries.

When Can Do Foreign Exchange and Transfer Operations Be Held in Turkey?

Aktive U.K Limited is able to continuously perform its operations today thanks to the flexibility of technology. However, it is possible to make the transaction physically between 09:00 and 16:00 in the morning in Turkey.

Money transfer transactions made before 14:00 GMT UK time can be controlled by your buyers in Turkey even at evening hours through mobile banking, internet banking and ATMs. We serve your foreign exchange in the UK between 09:00 and 18:30.