Banker’s buying rate (BBR)

A banker’s buying rate (BBR) is the rate at which a commercial bank purchases foreign currency from customers. This rate is typically lower than the selling rate and reflects what the bank is willing to pay for a unit of foreign currency at a given time.

In travel and international business, the BBR is important for pricing airline tickets and other services quoted in a foreign currency. Airlines, for example, may use the BBR to convert fares collected in one currency back into their accounting or home currency. It helps standardize pricing across regions and ensures consistency in financial reporting.

The BBR is one of many exchange rates used in the industry. Another notable option is the IATA Consolidated Exchange Rate (ICER). Unlike the BRR, which is dynamic and changes based on market conditions, the ICER is a fixed rate primarily used for airline ticketing purposes.