Why is the sell price always higher than the buy price when exchanging currency?

The sell price is always higher than the buy price in currency exchange due to the concept of a bid-ask spread, which reflects the costs and risks taken by financial institutions. This spread accounts for factors such as transaction costs, market demand, and the need for profit. Additionally, it compensates for fluctuations in currency value and ensures liquidity in the market. As a result, buyers pay a premium to acquire currency compared to what sellers receive when exchanging it.