tag:blogger.com,1999:blog-19649274.post2018989656413854706..comments2024-03-27T17:16:12.789+05:30Comments on The Leap Blog: Watching markets work: Spreads at a money changerAjay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-19649274.post-2732760139719067412012-03-05T15:43:38.577+05:302012-03-05T15:43:38.577+05:30THE SPREADS ARE HIGH SINCE THE ENTRY COST TO HAVE ...THE SPREADS ARE HIGH SINCE THE ENTRY COST TO HAVE THIS BOOTH AT ANY AIRPORT MUST BE HIGH. YOU GET A CAPTIVE CLIENT. OUTSIDE THE AIRPORTS IN ANY COUNTRY THE RATES ARE MORE REALISTIC.SHARAD BIJURnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-45520522794514888362011-10-12T14:09:35.108+05:302011-10-12T14:09:35.108+05:30Did you consider the huge cost of running this pla...Did you consider the huge cost of running this place inside Heathrow? Forex shops in London offer lower spreads than the ones inside Aiports do.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-65401945172019993752011-10-10T01:48:23.785+05:302011-10-10T01:48:23.785+05:30Reminds me of the time during Operation Desert Sto...Reminds me of the time during Operation Desert Storm when the bar at Bombay airport would not accept my cash Saudi Riyals as payement for the beer that I ordered. I guess the operators do not want to be left holding currencies with a high beta.Tusharhttps://www.blogger.com/profile/01316741315689052109noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-25174777437349261612011-10-06T23:33:22.958+05:302011-10-06T23:33:22.958+05:30Hi Ajay
Most travelers can simply withdraw currenc...Hi Ajay<br />Most travelers can simply withdraw currency from their ATMs (most airports have these) or buy currency before embarking on travel or simply pay with their credit cards in transactions, thus not needing to buy or sell foreign currency at all...all of these options would give you better rates than posted on this screen. The currency exchanges at airports mostly cater to people who are out of the other, better options and hence probably face a more inelastic demand curve. <br />Best<br />GGurnainhttps://www.blogger.com/profile/07943713231998130562noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-14069579901915093722011-10-06T09:28:29.957+05:302011-10-06T09:28:29.957+05:30Anonymous,
Yes, the list of countries on the boar...Anonymous,<br /><br />Yes, the list of countries on the board (this was inside Heathrow) surely reflects the number of tourists. But it also reflects the Pr(transaction|footfall). E.g. I'm sure there many tourists from UAE who pass through Heathrow, who never do money-changing against the Dirham, because the native locale of their personal finance is the US dollar. These customers would generate USD-GBP transactions and not AED-GBP transactions.<br /><br />Gurnain,<br /><br />I think this is perfect competition, that any fat gets competed away. Are there entry barriers that you can discern?Ajay Shahhttps://www.blogger.com/profile/03835842741008200034noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-30187886687503029562011-10-06T04:53:24.996+05:302011-10-06T04:53:24.996+05:30Why doesn't competition faced by/customers cat...Why doesn't competition faced by/customers catered to by this currency changer feature anywhere in your story? All demand and supply is defined by reference to a time and place...Gurnainhttps://www.blogger.com/profile/07943713231998130562noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-85377923873913794852011-10-05T20:07:29.801+05:302011-10-05T20:07:29.801+05:30Countries are based on customers, tourists US,EU,J...Countries are based on customers, tourists US,EU,Japan,China, India<br />Residents/immigrants/tourists - india, russia etc<br /><br />Surprised by absence of Bangladesh & Pakistan from immigrant. Depends where the picture was taken.<br /><br />In south hall common to see signs on shops "accept indian pakistani rupees"Anonymousnoreply@blogger.com