Question on Korean Won

[crimson_red]

Hi

Not sure if this is a noob question but can anyone enlighten as to why the Korean won is 839 now but most money changer are selling it at 825 ? I know thats how they earn but why the huge gap?

Thanks in advance

 

[Sg_Stone]

Hi

Not sure if this is a noob question but can anyone enlighten as to why the Korean won is 839 now but most money changer are selling it at 825 ? I know thats how they earn but why the huge gap?

Thanks in advance

Maybe look as a % of the difference? 14 Won should be worth close to nothing over there (never been to Korea before).. If you take those numerically huge figure such as rupiah or dong, I'm pretty sure the difference should be in 2 digits instead of decimal value when exchanging for ex. Myr

 

[crimson_red]

Maybe look as a % of the difference? 14 Won should be worth close to nothing over there (never been to Korea before).. If you take those numerically huge figure such as rupiah or dong, I'm pretty sure the difference should be in 2 digits instead of decimal value when exchanging for ex. Myr

That does sound logical. But I am quite puzzled as to how some managed to get it at 840 on 1-2 Feb 2019 when the official rate was only 829 ?

 

[limster]

when the official rate was only 829 ?

is there such a thing as 'official rate'?

 

[Mecisteus]

Download oanda currency converter app.

You can have an idea of how much the money changers are charging you compared to spot rates.

 

[revhappy]

Korean won is not such a popular currency among Singaporeans, so the spread is larger I guess. It is also a non deliverable forward currency not fully convertible.

 

[Shiny Things]

Hi

Not sure if this is a noob question but can anyone enlighten as to why the Korean won is 839 now but most money changer are selling it at 825 ? I know thats how they earn but why the huge gap?

Thanks in advance

Revhappy's got it. The reason the spread on KRW is wider than other currencies (e.g. USD) is that it's an exchange-controlled currency. It's hard for the money-changers to hedge it, so it's riskier for them; and it's probably a lower-volume currency, too, so they need to make more money on each trade.