This is the information you need if you are going to exchange money

18/04/2023

Are you planning a trip to a country outside the euro area and need to buy foreign currency? In this post, we explain the most important aspects of foreign exchange.

When we want to exchange money, the first step is to know the exchange rate that they are going to apply; that is, at what value the foreign currency is trading. Knowing the applicable rate is very important, but it is not the only factor that we have to consider.

Institutions may charge you a fee for this service. You will find establishments that offer attractive exchange rates, but be careful, because they may be accompanied by high fees, which can sometimes mean that the charges exceed 20% of the value exchanged.

Where can I go?

If you need to exchange euros for another currency (or vice versa), you can go to a credit institution or foreign currency trading institution.Abre en ventana nueva

These institutions are supervised by the Banco de España and are, therefore, obliged to meet a series of requirements designed to protect consumers.

The Banco de España, despite widespread belief, does not carry out currency exchange operations with individuals.

Basic concepts for currency exchange

• Foreign exchange operations in Spain are liberalised. This means that the exchange rate is free and, therefore, credit institutions or foreign currency trading institutions are not subject to official currency exchange Abre en ventana nuevarates. In addition, the exchange rate can change at any time.
• Entities that provide currency exchange services must provide us with prior information about the exchange rate and any applicable fees. As with any transaction, it is very important to be fully informed before undertaking it.
• There is no maximum limit on the fees or expenses that entities can charge for this service.

If you are thinking about exchanging money, do so well in advance. Compare different options and read the conditions they offer you carefully. Before handing over any money, ask to be clearly informed of the amount you will receive in the exchange and make sure that there are no additional fees. If there are fees, you will need to accept them prior to the transaction.