Foreign Exchange

Banks make money when people transfer money to different countries with different currencies. They do this by buying and selling currencies at different rates. They charge a little extra on top of the regular rate to make a profit. This extra amount covers the costs of managing the transfer, like fees and managing any risks. The amount they charge extra can be different depending on the currencies, the amount of money being transferred, and where it's going. Banks offer different services to help people transfer money to other countries, like wire transfers, exchanging currencies, and foreign currency accounts.

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