It’s quite common to have concerns and some confusion around currency exchange. As with any financial matter, it can be a little overwhelming, but it’s not a complete mystery. In this article we compiled three of the most common currency exchange questions, and we try to answer them to the best of our capabilities. Learn a little more about our business.

Currency exchange questions and answers

How does currency exchange works? This question is extremely common, and while the complete answer can be very complex, there’s a short simple answer to it: it works as any other trade. Currency exchange is traded worldwide, much like any goods, but because of the liquidity of what’s being traded, there are some particularities. Currency trades are usually not regulated by specific agencies and there is no control of “insider information” as it happens with stocks.

Why there’s a difference in rates posted online and the rates practiced by offices such as Hafez? We already answered this question on our FAQ, but we can try to simplify it even more. Basically the rates that figure on financial websites and newspaper are an indication of which direction the market is taking. Those rates are also based on transactions worth millions of dollars. For the regular consumer, it’s always a slightly bigger rate. That’s why Hafez can say that we offer the best rates between the Canadian dollar and the Iranian rial, because we have your best interest in mind.

How the rates are determined? Like we said before, currency exchange is much like any other type of trading. With that in mind, the rates are regulated and defined just like stock, bonds and other products: by offer and demand. If more people in Canada want to buy Rials, the price will go up, for example. Governments can also try to control the price, either by legislation or injecting or removing money from the international trades.

We hope that we answered those currency exchange questions. If you have any more questions, do not hesitate to contact us. Hafez Currency Exchange is the ideal place to deal with your money needs between Canada in Iran on North Vancouver. You can count on us and with our excellent rates.