exchange premium
- noun
- Specialized
:
prima de cambio
- Travelers often pay an exchange premium when converting cash at airports.
Examples
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The exchange premium can significantly increase the cost of international transactions.
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The bank charges a high exchange premium for foreign currency.
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Banks may charge an exchange premium in addition to the basic exchange rate.
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Many travelers are unaware of the exchange premium they will face.
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Banks may charge an exchange premium in addition to the basic exchange rate.
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Travelers often pay an exchange premium when converting cash at airports.
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The exchange premium can significantly increase the cost of international transactions.
Synonyms
58
5.4
An extra amount paid when goods are scarce or in high demand
An extra fee you pay when you change money from one currency to another
How Costly
Surface Forms
Morphology
The phrase combines 'exchange' (currency conversion) with 'premium' (an extra amount charged), so its meaning — an additional fee for converting currency — is directly and compositionaly derivable from its parts. This noun+noun construction and the concept of an added charge are common cross-linguistically, so a B1 learner who knows both constituents should be able to infer the meaning.
Etymology
Exchange premium: The noun exchange premium comes from a simple image: when you make an exchange, a shop or bank asks for a small premium on top. Imagine handing over money at an airport and paying a little 'extra' above the normal rate; that 'extra' is the exchange premium, which is why the term means the added 'cost' of converting money.