Money Changer We Buy We Sell
Are you one of those Malaysians who are still confused about the definitions of: “We Buy” and “We Sell” at the money changer ?
Confused Over Money Changer We Buy We Sell Definitions
The thing is when we go a money changer is because we need to change a certain currency to another currency. So the key word is to CHANGE. But when we are at the money changer counter or booth, they use a different terminology. You see the terms: BUY and SELL.
That’s where the confusion starts, right?
We Buy We Sell Currency
I know some of you Malaysians are confused about the terms: “We Buy” and “We Sell” written on the board of the currency exchange counter. Don’t feel silly about yourself. You are not alone. I will explain to you, the simplest way possible.
Currency Exchange We Buy We Sell
The pronoun “We” actually means the owner of the currency exchange counter. In other words, the currency exchange counter (rather the guy behind the counter) is saying: “We are buying from you” and “We are selling to you”, Alright, got it?
Now, look at the example below:
You want to go to United States and you need some US Dollars. As a Malaysian, you take your Malaysian Ringgit to BUY US Dollar from a currency exchange counter or shop. Meaning, they SELL it to you.
Lets say you want to buy US Dollar with your RM2000. As I have said they SELL it to you. So, you look at the term “We Sell” on the board. On the board of the currency exchange counter, you see the rate written as:
We Buy – 3.09
We Sell – 3.15
In other words, you look at “We Sell – 3.15”. You have to divide because your Malaysian Ringgit is smaller in value as compared to US Dollar by three times over.
So, your RM2000 is divided by 3.15. (2000/3.15 = USD634.92). Your RM2000 is worth USD634.92.
Now you came back to Malaysia and you have some balance in US Dollars. You want to change or convert it back to Malaysian Ringgit.
Let’s assume you have a balance of USD64.50 Now you want to convert your USD64.50 back to Malaysian Ringgit. You want to sell it back to guy in the currency exchange counter.
This time you have to refer to “We Buy” as written on the board. Because they BUY back your US Dollar, and they give you Malaysian Ringgit.
Let’s assume it is still the same rate as mentioned above. [US Dollar We Buy – 3.09 We Sell – 3.15]
Now your USD64.50 times 3.09 (64.50 X 3.09 = RM199.30. This time you time because US Dollar is bigger in value compared to Malaysian Ringgit.
Foreign Exchange Rates In Malaysia
Note: I am sure you will notice the rates under “We Buy” is LOWER than “We Sell”. (see below) That’s is how the currency changers make their profits.