I'm not an economist. I'm looking to exchange my CAD to EUR. I watched the rates on a exchange office, and I found something strange:
We buy: We sell: 1 EUR = 1,4946 CAD (1) 1 EUR = 1,3280 CAD (2) 1 CAD = 0,6691 EUR (3) 1 CAD = 0,7530 EUR (4)
How can there be 4 different rates? I understand why CAD -> EUR is different of EUR -> CAD with the supply and demand. When the exchange office buys 1 CAD, it sells EUR too. I supposed it was to make things easier, so I checked it:
1 EUR = 1,3280 CAD (2) => 1,3280 CAD = 1 EUR 1 CAD = 0,6691 EUR (3) 1,3280 * 1 CAD = 1,3280 * 0,6691 EUR => 1,3280 CAD = 0.8886 EUR
Here, we found that it's indeed, more interesting for the customer to accept a sell than buying (from the office point of view for the words buy/sell). But is the difference, normal? And why?