When should I refer to the "buy" and when to the "sell" exchange rates?

When checking the current currency exchange rates, you have a choice between referring to mid-market currency exchange rates used by currency converters, "buy", and "sell" rates.

All of these exchange rates types can be required in different situations. This article summarises when you should refer to which rates.

You need to refer to the mid-market currency exchange rates (the midpoint between the most common buy and sell prices from global currency markets), such as the ones used by Convert My Money, when:

• The required value cannot be biased towards buying or selling
• Estimating the value of goods or services
• Doing basic accounting and invoicing
• Preparing financial plans and reports

You need to refer to the “buy” exchange rates when:

• Exchanging your local currency for a foreign currency in your home country
• Using a credit or debit card abroad
• Transferring money abroad
• Making payments for goods and services purchased abroad
• Withdrawing cash abroad

You need to refer to the “sell” exchange rates when:

• Exchanging your local currency for a foreign currency abroad
• Exchanging money left over from a foreign country back in your home country