Hello everyone, I am looking for some information. I would like to know if there are any limitations on banks buying foreign currency to serve the needs of their clients. Specifically, can banks in Europe buy and sell USD whenever they want at the market price? The reason I am asking is because many banks in Europe use a fixed exchange rate determined at the beginning of the day and then apply a spread to that rate. So if someone in Europe wants to wire USD to the US they pay not only the wire commission but also a 0.5-1% spread in the EUR/USD (unless the currency moves considerably against the bank). If it is possible for banks to buy whenever they want at the market price, why do they not buy and sell for their clients' transfers at the market price? I am aware that they make very big profits through this spread, but if for any reason they have no choice ( European Union regulation?) then there is no point in me complaining. I hope someone knows or can help. Thank you very much.