Foreign exchange rate

1.Concept of the foreign exchange rate the foreign exchange rate is converting into the rate, rate of exchange or price of the currency of another country with the currency of a country; Unless we can say too, whose name is by currencies national " prices " of currency foreign that say. because international trade and for trade contacts, need to handle international settlement, so the currency of a country between various countries, to the currency of the other countries, all stipulate that there is a foreign exchange rate, but the most important thing is to a few national monetary foreign exchange rate such as U.S. dollar among them.
2.Marked price method of the foreign exchange rate Convert the currency of two countries, should confirm first it is as the standard which country 's currency is used. Because standards confirmed are different, there are two kinds of marked price methods (Quotation) of exchange rate.
Use foreign currency of a unit or 100 units as the standard, convert into the national currency of certain number, named the marking a price law (Direct Quotation) directly. In mark a price under the law directly, foreign number of currency immobilize, with change and change currency foreign or currency value national national number of currency. The hopeless most countries adopt the marking a price law directly. The magnitude of value of the monetary unit of some countries is relatively low, for instance Japanese yen of Japan, lira of Italy,etc., regard 100, 000 or 10, 000 as the standard of converting sometimes now.
Use national currency of a unit or 100 units as the standard, convert into certain amounts of foreign currency, named the marking a price law (Indirect Quotation) indirectly. In mark a price under the law indirectly, national number of currency immobilize, with change and change currency national or currency value foreign foreign number of currency. Britain, and U.S.A. to adopt, mark a price country of law indirectly.
3. Buying rate, selling the exchange rate and medium rate
Foreign exchange trading generally concentrates on financial institutions such as the commercial bank,etc.. Their purpose of buying and selling the foreign currency is for pursuing profits, the method is to buy cheap and sell dear, earn and buy and sell the price differential, the exchange rate which the commercial bank bases on when the organization buys the foreign currency calls " the buying rate " (Buying Rate), call " the purchasing price " too; Base on exchange rate shout " sell the exchange rate " (Selling Rate) sell foreign currency, call " the selling price " too, buying rate and selling the range of the difference of exchange rate generally in 1‰ to 5‰, various countries are not the same, the difference between the two, the commercial bank buys and sells the profit of the foreign currency. The buying rate, with buying the summation of exchange rate out, divided by 2, is the medium rate (Medial Rate).
Generally show the buying rate and sell the exchange rate in exchange rate quotation listed on the foreign exchange market. In mark a price under the law directly, certain one home currency figure behind the foreign currency say " purchasing price " bank pay home currency of customer count buy foreign currency, promptly; Later home currency figure say " selling price ", bank count to home currency that customer collect sell foreign currency. Under indirect admission fee law, situation just the opposite, last foreign currency behind home currency figure " selling price ", bank receive a certain amount of (1 or 100) home currency sell foreign currency, it foreign currency paid to customer count; The last foreign currency figure " purchasing price ", bank pay a certain amount of (1 or 100) home currency buy the foreign currency, the foreign currency that it collects from the customer is counted.
Economic newspapers and periodicals said foreign exchange rate go up, in mark a price under the law directly, it prove the getting expensive in foreign currency,therefore it exchange by home currency than with before many,last quantity of foreign currency than in more than before home currency. The exchange rate of the foreign currency drops, the situation is opposite. Source: http://220.194.61.120/cgi-bin/web.cgi?tranFlag=02400&domain=00&url=http://www.forexman.cn/
4. Kind of the exchange rate (Classification of Foreign Exchange Rate)
(1)Come, divide according to elasticity intensity of exchange control, can divide into officer make the exchange rate (Official Rate official rate) and exchange rate of market (Market Rate).
①The officer fixes the exchange rate (official rate): This kind of exchange rate mainly refers to the official side (such as the Ministry of Finance, Central Bank or by the specialized bank of the designated foreign currency) exchange rate stipulated. Forbid the existence of the free market in the country with stricter exchange control, it is the actual exchange rate that the officer fixes the exchange rate, but there is no exchange rate of market.
②The exchange rate of market: This refers to actual exchange rate that buys and sells the foreign currency on the free foreign exchange market. Exchange control looser country, officer make exchange rate only form often, have price have city, the real foreign exchange transaction goes on according to the exchange rate of market. (2)Divide according to property and use of the foreign exchange funds, can be divided into the exchange rate of trade (Commercial Rate) and financial exchange rate (Financial Rate).
①The exchange rate of trade: This is mainly meant and uses for foreign trade and is subordinate to the exchange rate of the expenses.
②Financial exchange rate: Mainly mean the exchange rate of the respect that the fund is shifted and travelled,etc..
(3)Whether suitable for different sources and uses being can be divided into single exchange rate (Single Rate) and many kinds of exchange rate according to the exchange rate (Multiple Rate ----Plural exchange rate or exchange rate of replying).
①Single exchange rate: Every first country only there is an exchange rate externally, the receipts and payments of different sources and uses press this calculation, called the single exchange rate.
②Many kinds of exchange rate: The currency of a country stipulates to the exchange rate of a certain foreign currency that there is two or more exchange rate because of the change of the use and trade kind, called many kinds of exchange rate, call replying the exchange rate too.
(4)Divide according to the foreign exchange transaction tool and time of receipts and payments, can be divided into:
①Wire the exchange rate (T/T Rate): Notify foreign currency price that pay the bill with telegram or telex whether ask exchange rate of sending a telegraphic remittance. The exchange rate of sending a telegraphic remittance accepts time fastest, the general bank can't take up customer's fund, so the exchange rate of sending a telegraphic remittance is the most expensive. The deal price of the foreign exchange transaction of the bank means that wires the exchange rate. The exchange rate is to calculate the other foundations of different exchange rate to send a telegraphic remittance.
②The exchange rate of mail transfer (M/T Rate): I.e. notify the foreign exchange rate of paying the bill in letter way. Because of airmail, notify, need time to be long than telegram or telex, bank may take the customer's fund for a fixed period of time, so the mail transfer exchange rate is lower than the exchange rate of sending a telegraphic remittance.
③The ticket gathers together the exchange rate (D/D Rate): The exchange rate adopted lets the ticket gather together the exchange rate while exchanging various foreign currency drafts, cheque and other notes. The foreign currency exchange can also be listed in this. Because ticket remit at time limit having immediate and at a specified future date differencing, so exchange rate divide into sight bill remit the exchange rate and long-term ticket remit the exchange rate again, the latter should deduct the interest that paid the bill at a specified future date on the basis of gathering together the exchange rate in sight bill.
④The long-term exchange rate (Forward Rate): The long-term exchange rate means that completes a business transaction in the following a certain days, and the price of foreign exchange trading previously agreed upon.
(5)According to the target of buying and selling:
①The exchange rate (Inter-Bank Rate) among the banks: Mean the foreign exchange rate used in the foreign exchange transaction of bank and bank, it is the exchange rate of the foreign exchange market either.
②The commercial exchange rate (Commercial Rate): Mean bank and businessman buy and sell the exchange rate of the foreign currency.