you can buy the currency,(example vietnam dong) what happens when you want to sale/exchange it back.Will you need a special account,if so what kind,what bank(s). Or can you just walk in the same place that sales it. (note: we're talking at a higher exchange rate)
Answers (2)
do i understand that you talk about spot FX deal? if yes, then you first need to pay attention to any FX constraints you may have in your country - e.g. some contries can temporarily forbid converting national currency in a foreig one.
if there is no such restriction you can make the transaction cash or via a bank account. assuming you want so sell vietnamese dong and buy US dollars: in cash : you go to a FX bureau pay dong and get US dollars. When you want to change back you go to any FX bureau and sell the USD for dong. If you want to do it via bank accounts, you first set up the USD account and then instruct your bank to sell your dong for USD, tey will bebit your USD and credit dong accounts as per given instructions. When you want to sell back you proceed the same way, instruct bank to sell your USD for dong.
Yes, the bank will always have a spread between its bid and ask price. So, assuming there is no FX fluctuation beteen the buy and sell operations you will lose money due to this spread.