Interbank Exchange Rate
The 'interbank' exchange rate is the average rate that banks around the world are buying and selling currency at, at any given time.
The rates we publish on the latest exchange rates page, are the interbank prices updated on a daily basis. However in reality, the interbank exchange rate is changing continuously every couple of seconds through the week.
Because currency markets are international, the interbank rate also continues to fluctuate overnight through the week, as while European markets are closed, the Asian and American markets are still open.
As the interbank rate is an average between buying and selling rates, it is not a rate that can physically be achieved by individuals or corporations. If you are buying a currency, you will always be offered a rate just below the interbank rate, and vice versa. In general, the closer a quote is to the interbank rate, the more competitive it will be.
Banks tend to offer 'commercial exchange rates' for their transfers, but a currency broker will usually be able to offer you a rate even closer to the interbank rate than your bank's commercial rate, which is where a saving can be achieved for your international payments.