When dealing in International Business—It is very, very important to pay attention to currencies & exchange rates. Did you know that banks issue a minimum of 5 different exchange rates? Most banks will trade money at the “true” bank rate. But, consumers like you & I can never “buy” money at the true bank rate. I would assume that banks offer slightly inflated exchange rates, so that they can protect themselves when they convert currency. Currency Exchange rates can blow up, out of proportion when a National Emergency Occurs, when a war breaks out, when a terrorist attack may happen, floods, earthquakes. I have seen Currencies fluctuate by 50% when a world event occurs. It is ALWAYS best if you conduct Global Business—-To ALWAYS pay in Foreign Currency—Because, each time money is converted—-you can guarantee that the exchange rate used, will NOT be what the Banks can Trade in. You will be paying an inflated rate. If you are to conduct repetitive business, it is ALWAYS best to source a way to pay for your goods in their own local currency. Since Global businesses will be converting their currency into U.S. Dollars–you can rest assured that you will be paying an inflated exchange rate—which yields the receiver some extra “hidden” profit. Now, on 1 hand——-a small markup is valid & justifiable, as Currencies do change daily, based on the strength of that Country’s Currency and based on circumstances within the world…….but as a general guideline—–you should never, ever except an exchange that is over 3 or 4 % Markup from the Bank Rate. In one of my 1st Global Transportation Jobs, our Corporate policy was to Mark-Up all Foreign Currency by + 12%, sometimes + 15% above what Bank Exchange Rate. This is hidden profit for recipient. If you would like a more complete understanding of Converting Global Currencies————-CALL MICHAEL S DUBIN CHB 727-458-1972 ———Michael