Frequently Asked Questions: GBP / USD
1. How is this GBP to USD rate determined?
This rate is synchronized from European Central Bank (ECB) daily reference rates. The ECB conducts a daily concertation procedure between European central banks at approximately 16:00 Central European Time (CET) to establish authoritative daily benchmark fixings.
2. Why does my bank or exchange kiosk offer a different rate?
Central bank reference fixings represent mid-market benchmarks without retail margins. Retail commercial banks, credit cards, and foreign exchange brokers add a spread (typically 1.5% to 4%) to generate revenue and protect against intraday market volatility.
3. When does this exchange rate update?
The rate updates once every European TARGET business day at approximately 16:00 CET (excluding TARGET weekends and official European monetary holidays).