A person who exchanges one currency for another is known as a money changer. The rates at which these trades take place are frequently fluctuating and are determined by international exchange rates. A person can work in this capacity either independently or as part of a team. Service fees or fluctuating currency values could be the source of his income.
A person may need to exchange one type of currency for another for a variety of reasons. International tourism is usually the main reason. When visiting another country, the monetary system is frequently different. This makes it impossible for a person to use her home currency while visiting a foreign country. A money changer is someone who can help you out in this situation.
A money changer takes one type of currency from a customer and exchanges it for an equal amount in another. The rates of the money changer may be fixed in some cases. However, current international exchange rates are most commonly used to determine trading rates. These are constantly changing, and the most precise currency changers use electronic systems that can respond to changing exchange rates in real time. Currency traders who do not have access to cutting-edge tools are more likely to have a fixed rate throughout the day.
A money changer can profit in two ways from the services he provides. Some companies will charge a fee for each trade they make. Others profit primarily by selling the currency they have acquired when the value of the currency rises. For example, if a currency trader received $100 USD today, he might be able to exchange it for 7,000 South African rands. If he saves that $100 USD until tomorrow, he might be able to sell it for 8,000 rands.
Tourists are approached by money changers in many countries when they are in areas where they are likely to encounter foreigners. They are usually ready to make transactions on the spot and accept a variety of major currencies. The exchange rates offered by these individuals are frequently more favorable to tourists than those offered by travel agencies. Many people are unaware that this is considered black market trading and is usually illegal because it is so common and open.