Changing £s to YTL

CJtill


Joined: 02/05/2008
Posts: 836

Message Posted:
20/11/2008 17:06

Does anyone know why the money exchange shop in Girne High Street consistantly outperforms the banks when buying and selling currency.

This morning I could have bought Lira at 2.53 to the pound and sold it at 2.56 where as if I had carried out this transaction at either Credit West, Continental or Shecker bank at the same time I would have bought at 2.50 and sold at 2.58.

The precise figures are unimportant but the spread difference is huge when dealing with my hard earned.

Any ideas why

Michael

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
20/11/2008 17:07

they don't have the overheads that the banks do and so work on smaller margins.....



Simple





Nick

CJtill


Joined: 02/05/2008
Posts: 836

Message Posted:
20/11/2008 17:15

Understand that but, when the owner of the shop has sold all his Lira to tourists and has a fistful of sterling (or dollars if you must) he then has to go and buy more lira by selling his £.

How.

If he goes to the bank then he will lose on the transaction as what he sold at 2.53 he must be able to buy back at a better rate or he will go bust.

This, with the banks spread being approx 8 points (2.50 to 2.58)seems impossible to a layman like me.

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
20/11/2008 17:19

not how it works - basically he rely's on tourists wanting to swap their currency into YTL and locals wanting to swap YTL for other currencies....



The exchange bloke at the border is laughing - one minute the Greeks are swapping Euro for YTL, then the next customer wants Euro for his YTL...





Nick

breezyboy


Joined: 14/05/2007
Posts: 1179

Message Posted:
20/11/2008 17:24

Think that there is a lot more to it than that.

I always get a better rate asking my customer manager so long as it is a decent amount involved.The shop man must also get a better rate for handling large amounts.

One thing can be that whilst the rate is moving up & down all day the exchange guy has bought at a different rate and sells that batch at a better rate than the basic over the counter bank exchange rate.

One day in October whilst sitting with my customer manager discussing a number of items the rate changed 3 times duriing our conversation. Luckily for me it was in my favour and I made £200 whilst sat there. He thought this was great but wouldnt sit and chat all afternoon!

CJtill


Joined: 02/05/2008
Posts: 836

Message Posted:
20/11/2008 17:44

Message 4

This works if there as an even amount of exchanges throughout the day so that all he takes is the difference between the buy and sell spread each time and therefore make a mint but,

Message 5

The amount you want to exchange should not make too much difference as I was looking to sell £30kplus at the bank and the offer did not improve.

I know the lira is a volatile currency so that man in the shop cannot gamble in this way as he will soon go out of business.

It was good you made £200 by just having a chat, but as we all know it could have gone the other way.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
20/11/2008 18:15

to the top

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
20/11/2008 18:17

it's not rocket science....

Dusterbruce


Joined: 03/08/2007
Posts: 1125

Message Posted:
20/11/2008 18:30

In the 27 years I have been visiting Kyrenia it has always been the same

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
20/11/2008 18:31

(message 9) - the "i've been coming to TRNC for XX years brigade are out"



I'm surprised you want anything to do with the place seeing what it's changed into....

breezyboy


Joined: 14/05/2007
Posts: 1179

Message Posted:
20/11/2008 18:38

CJtill

The rate was only different at the till for a small amount. Agree it may not change for a big amount talking to customer manager but varies by bank. Turk bank have worst rates and interest and dont want to talk, whilst Iktisat and Garanti will talk to you and in some cases give you a better rate, they have with me. There must be a wholesale rate somewhere.

the butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
20/11/2008 20:55

Hi CJtill,



The large foreign exchange departments buy their money from the International money markets at a competative rate. Most exchange of money involves commission and it is this buying and selling plus the commission on each transaction where they make their money. I think if you have lower overheads you can be a little more generous with the rate. If you buy YTL in England you will get at least 10% less than if you buy in TRNC.



The Butlers wife

craig2536


Joined: 09/06/2007
Posts: 277

Message Posted:
21/11/2008 17:05

sun exchange office next to rocks hotel always gives the best rate of exchange, speak good english and for larger amounts give a better rate again. dont use the rip off banks to change your money

CJtill


Joined: 02/05/2008
Posts: 836

Message Posted:
21/11/2008 17:47

All interesting info about how the system works.

I wonder what the limit is with Sun Exchange, ie would they change a suitcase full. Might ask them next time i am passing.

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
22/11/2008 14:37

I do most of my buying and selling on line with the HSBC in NC

FYI...the exchange rate changes every minute, last thursday sold GBP for 2.6

sold YTL on friday for 2.51

no walking the streets checking out prices

craig2536


Joined: 09/06/2007
Posts: 277

Message Posted:
22/11/2008 15:08

sun had no problem changing very large amounts of sterling last week, just call them first before you go to their office

HarryHornet



Joined: 18/07/2007
Posts: 291

Message Posted:
22/11/2008 20:58

Recently to bureau de change opposite the Dome Hotel has been giving slightly better rates for £ to YTL than the high street exchange

CJtill


Joined: 02/05/2008
Posts: 836

Message Posted:
23/11/2008 10:29

Stewart

When you buy and sell you currency with HSBC do you check out both the buy and sell rates to see what the actual spread is.

Are we looking at a 3 kr margin like the high st or a 8 kr margin like other banks.