Classification of Foreign Exchange Rate

Classification of Foreign Exchange Rate

1, from the perspective of development of the exchange rate to examine:

1, the exchange rate (Basic Rate) Often choose an international economic transactions, the most commonly used in the foreign exchange reserves had the largest share of the key can be freely convertible currency as the main object, compared with the national currency, setting out the exchange rate, this rate is the basic rate. Key currency generally refers to a world currency, is widely used in valuation, settlement, reserve currency, freely convertible and internationally accepted currencies. Currently as a key currency is usually U.S. dollars, the national currency against the U.S. dollar as the benchmark rate. The RMB exchange rate is the benchmark by the People's Bank of the previous day's interbank foreign exchange market to form the weighted average dollar against the yuan, the very day the major trading currencies (dollar, yen and Hong Kong dollars) to RMB transactions in the benchmark rate, that is, market transactions U.S. Dollar.

2. To develop the basic exchange rate after the currency's exchange rate against other foreign currencies can be set through the basic rate calculation, so that the exchange rate is derived cross rates, (GossRate) also called set of currencies. Cases of March 5, 2002 the People's Bank announced the base rate USD / RMB = 8.2767, while the international market, USD / CAD = 1.5913, so you can calculate the set of CAD / RMB = 5.2012, indicated that a Canadian dollar can be exchanged for 5.2012 yuan. 2, from the perspective of exchange rate regimes: 1, the fixed exchange rate (Fixed Rate) Refers to a country's currency with another currency's fixed exchange rate, exchange rate fluctuations small. In the gold standard system, the fixed exchange rate determined by the two gold coins of the gold content, the boundaries are caused by fluctuations in gold input and output of the exchange rate, volatility of gold in the cost of transportation between the two countries. After the Second World War to the early seventies of the Bretton Woods monetary system, members of the monetary provisions of the International Monetary Fund gold content and the U.S. dollar. Strictly limit the volatility of exchange rates at the official exchange rate of the upper and lower 1% range next. Due to exchange rate fluctuations is small, it is also a fixed exchange rate. 2, a floating exchange rate (Floating Rate) Refers to a country's monetary authorities did not provide for the national currency against other currencies, the official exchange rate, nor any exchange rate fluctuations of the upper and lower limits, the currency supply and demand in the foreign exchange market by the decision to swing free. When an oversupply of foreign currencies, foreign currency devaluation, the currency appreciation, foreign currency exchange rates fell; the contrary, foreign exchange rates increases. National monetary authorities in the foreign exchange market, appropriate intervention, so that the currency exchange rate fluctuations will not be too large to safeguard their own economic stability and development.

RMB exchange accumulated a record high 3, from the perspective of foreign exchange trading banks: 1, buying rate (BuyingRate) Also called the bid price is the foreign exchange banks to their customers to use when buying foreign currency prices. In general, the foreign currency equivalent to local currency exchange rate is that fewer of the buying rate, which indicates a certain amount of foreign currency needed to buy how much national currency. Its customers are mainly exporters, selling price is often referred to as "import exchange rates." Such as the March 5, 2002 USD / RMB exchange rate is 8.2635 to buy the bank to buy one U.S. dollars in foreign exchange, paid to the client 8.2735 yuan. 2, selling rate (selling Rate) Also known as the foreign exchange selling price refers to the banks to sell foreign exchange to their customers to use when the exchange rate. In general, the foreign currency equivalent to local currency exchange rate is that a few more selling exchange rate, it is that the banks can sell a certain amount of foreign exchange necessary to recover the number of national currency. Its customers are mainly importers, selling price is often referred to as "import exchange rates." Such as the March 5, 2002 USD / RMB exchange rate is 8.2899 to sell the bank to buy out the one U.S. dollars in foreign exchange, charging their customers for 8.2899 yuan. Bid Offer Price is based on foreign exchange transactions in which the buyer or the seller's status determined. The difference between the purchase and sale price is generally about 1% ~ 5%, which is bank charges, foreign exchange earnings. Such as the March 5, 2002 USD / RMB exchange rate of the buying rate and selling the difference 0.0264, which is bank charges.

3, intermediate exchange rate It is the buying price and selling price average. Newspapers reported that the exchange rate used when the middle of the exchange rate news. Fourth, foreign exchange transactions from the perspective of the payment form of notification: 1, wire transfers the exchange rate Telegraphic transfer exchange rate is the bank selling foreign exchange, with its cable as the delivery vehicle, to inform their foreign branches or correspondent bank for payment to the payee to use when an exchange rate. Wire transfer international funds transfer system the most rapid way of an international exchange, can in one payment within three days, banks can not use customer funds, and therefore the exchange rate the highest wire.

Exchange rate 2, mail transfer rate Mail Transfer exchange rate is in the bank to sell foreign exchange, you use the notification by correspondence to the payee bank transfer as a remittance method. As the postal process needs a longer time, banks can process during the use of postal customers money, mail transfer rate lower than the telegraphic transfer exchange rate.

3, ticket exchange rates Votes in exchange rate refers to the bank to sell foreign currency, the opening of a foreign branch or correspondent bank for payment by money order to the sender, who shall be brought or sent overseas withdrawals. As the votes to sell foreign currency exchange rates from foreign exchange to pay for some interval of time, banks can take up during this time of customers funds, so the votes in exchange rates generally lower than the telegraphic transfer exchange rate.

5, from the delivery of foreign exchange trading period of the length of study:

1, the spot exchange rate (SpotRate) Refers to the spot foreign exchange trading exchange rate. Namely, foreign exchange transaction, the buyers and sellers in the day or within two business days for delivery by the use of exchange rates. The spot exchange rate is the spot exchange rate. Spot exchange rate is the spot delivery of the currency determined by supply and demand. Generally listed in the foreign exchange market, exchange rate, unless otherwise marked other than the forward rate, generally refers to the spot exchange rate.

2, the forward exchange rate (ForwardRate) It is certain period of time for delivery in the future, while the pre-contract by the seller and the buyer reach an agreement rate of exchange. To the delivery date, booked by the parties to the agreement according to the exchange rate, the amount for delivery. Forward foreign exchange trading is a reservation transaction is the result of foreign buyers of foreign exchange funds are required at different times, and in order to avoid foreign exchange risks introduced. Forward rate is the spot exchange rate-based, that is, with the spot exchange rate of the "premium", "premium", "parity" to express. Among them, if the forward rate than the spot rate expensive, higher than the difference between the call premium (Premium); if the forward rate cheaper than the spot rate, low-margin called out of discount (Discount); if the forward rate and the spot exchange rate are equal, there is no premium and discount, known as parity (Par).

6, from the perspective of foreign exchange banking hours:

1, Opening Rate: This is a foreign exchange bank business day in the beginning of a business to carry out foreign exchange trading when the exchange rate used.

2, the closing rate: This is a foreign exchange bank foreign exchange transactions of a business day at the end of the exchange rate. With the development of modern science and technology, the modernization of equipment, foreign exchange transactions, foreign exchange markets around the world as a single entity. Because there is time difference between countries in major cities, while the interaction of the major foreign exchange market exchange rate, it opened a foreign exchange market exchange rates is often subject to a time zone on the foreign exchange market, the impact of the closing rate. Opening and closing rate only a few hours apart, but in the exchange rate turbulence of today, there will always be greater access.

7, according to the different foreign exchange controls to divide 1, the official exchange rate The official exchange rate is by a country's foreign exchange regulatory body established and published exchange rates. Strict foreign exchange controls in the country, this form of exchange dominated, while the foreign exchange regulations are quite loose state, the official exchange rate only to take the role of the central rate. According to the International Monetary Fund (IMF) data, the present members of the official exchange rate under the following categories:

(1) a particular currency peg under;

(2) limited the flexibility of a currency peg;

(3 ) cooperative arrangements to decide;

(4) adjustment based on a set of indicators;

(5) provided by a managed float;

(6) In accordance with provisions of the independent variable; 2, the market exchange rate In a free market exchange rate refers to the foreign exchange market trading of foreign currency the real exchange rate. With the changes in foreign exchange supply and demand fluctuations. The Government to make its exchange rate adjustment, it must by influencing the foreign exchange market intervention. When the government powerless to intervene in the market exchange rates or control, tend to adopt announced devaluation of the methods to resolve. 3, the black market exchange rate The black market exchange rate is in the foreign exchange black market sale of foreign currency exchange rates. The strict exchange controls in the country, all foreign exchange transactions carried out according to the official exchange rate. Some holders of foreign currency are higher than the official rate of exchange on the black market sale of foreign currency could be in exchange for more domestic currency, which is the black market foreign exchange market, foreign exchange providers; while others can not access or access to the official exchange rate does not sufficient demand for foreign exchange will have to make the price higher than the official exchange rate from the black market foreign exchange market to buy foreign currency, which is the foreign exchange market foreign exchange black market demand for those. Interest rates on the important impact of foreign exchange rates 8 In addition, people often talk about the exchange rate types are the following: 1, cash exchange rate (Bank Notes Rate) Also known as cash sale price. Refers to the bank to buy or sell foreign currencies in the exchange rate to use when. In theory, the cash price with the sale of payment instruments in foreign currency, foreign currency credit vouchers and other forms of sale and purchase price of foreign exchange should be the same. But in real life, because most countries do not permit the foreign currency in domestic circulation, the need to buy foreign currency in cash delivered to the issuing country or region to be able to flow, it is necessary to take a certain degree of freight and insurance, these costs need to be borne by the customer. Therefore, the banks hand the use of foreign currencies in the exchange rate, slightly below that of other forms of buying foreign currency exchange rates; and banks to sell foreign currencies using the exchange rate is the same as in the Exchange Offer Price. 2, the nominal exchange rate That is the market exchange rate, and the real exchange rate symmetry, is a convertible currency to another currency amount. The nominal exchange rate is usually the first to set a specific currency like the dollar, the SDR as a standard, and then determine in connection with such currency exchange rates. The exchange rate in accordance with U.S. dollars, SDRs to changes in currency. The nominal exchange rate does not reflect the real value of the two currencies, is with the foreign exchange market to changes in foreign exchange supply and demand in the foreign exchange buying and selling prices. 3, the real exchange rate The official rate of exchange. Mint parity in accordance with the real exchange rate or gold to formulate the exchange rate parity. In the gold standard system, the national provisions of the gold content of each unit of coinage, gold content in contrast to the two currencies is called Mint parity. This is the gold standard system, two kinds of comparison of the formation of the real value of the currency exchange rate, is the gold standard system, the real exchange rate. In the notes in circulation system, notes the value of gold symbols, initially provided for notes gold content of the gold content of this note is called gold parity comparison to gold parity as the basis for the decision of the exchange rate. After the decree due to paper money and notes of the actual gold content of gold representative of the amount of out of touch, which notes the real value of the exchange rate changed by comparison to determine its exchange rate. In short, whether in the gold standard, paper money in circulation system, the basis for determining the exchange rate are the comparison of the real value of the currency the real exchange rate fluctuations in non-compliance of supply and demand fluctuations in the foreign exchange market, not the actual market exchange rate foreign exchange trading should be the basis for the sale of foreign exchange. The actual sale of the foreign exchange market foreign exchange rate is always deviate from the real exchange rates.

Foreign Exchange Rate ==>

Classification of Foreign Exchange Rate ==>

Foreign exchange rates - pricing approach ==>

Foreign Exchange Rate

Foreign Exchange Rate-what is foreign exchange rate

Foreign Exchange Rate is a country's currency into another national currency conversion rate parity or price. It can be said, are expressed in domestic currency to foreign currency "price." Foreign Exchange Trading generally concentrated in commercial banks and other financial institutions. Of their foreign exchange trading is aimed at the pursuit of profit, is cheap buying expensive goods to sell, bid-ask spread earn their buying foreign exchange when the exchange rate based on buying rate, also known as the bid price; sell foreign exchange when the exchange rate based on called the selling exchange rate, also known as the selling price. In direct price law, the buying rate for banks to buy one unit of foreign currency to pay for the number of banks selling currency to sell a unit of foreign currency received by the number of the local currency. Intermediate exchange rate is the buying rate and selling rate of the central parity, that is buying rate selling rate 10 1 / 2 = intermediate exchange rate applicable to the sale of foreign exchange between banks, which means that they buy and sell foreign currency would not make a profit.

Foreign exchange rates - exchange rate system

1. The concept of exchange rate regime Exchange rate system, also known as exchange rate arrangements (Exchange Rate Arrangement): is widely used to determine their own national currency and other currencies, the exchange rate system. States or the international community for the determination, maintenance, adjustment and management of the exchange rate principles, methods, modalities and institutions, the provisions made by the system. Exchange rate regime on the national exchange-rate decision to have a significant impact. Review and understand the exchange rate system, you can give us the international financial market fluctuations in the exchange rate to gain a deeper understanding. In accordance with the size of the exchange rate volatility, exchange rate system can be divided into a fixed exchange rate regime and floating exchange rate system.

Fixed exchange rate system (fixed exchange rate system) refers to itself or the legal gold content-based currency exchange rate, the benchmark for determining the exchange rate as a relatively stable exchange rate system. In different monetary systems have different fixed exchange rate system.
a. floating exchange rate system (floating exchange rate system) refers to a State does not require local currency and foreign currency exchange rate fluctuations in the gold parity and the limits of the monetary authorities do not undertake any obligation to maintain the boundaries of exchange rate fluctuations, the exchange rate with the foreign exchange market to changes in supply and demand and free a floating exchange rate system from top to bottom. The system already existed in history, but the real epidemic is in 1972 dollars as the center after the collapse of the fixed exchange rate system.

2. The contents of the exchange rate regime a. the principles and basis for determining the rate. For example, based on the value of the currency itself, or the value of a statutory basis for such representatives.

b. to maintain and adjust the exchange rate approach. For example, to adopt an open approach to statutory revaluation or devaluation, or allowed to float or official to take a limited intervention approach.

c. management of the exchange rate of the laws, institutions and policies. For example, national foreign exchange control exchange rates and scope of the relevant provisions.

d. The establishment, maintenance and management of the exchange rate of the body, such as Foreign Exchange Authority, the Exchange Stabilization Fund Committee.


Foreign Exchange Rate ==>

Classification of Foreign Exchange Rate ==>

Foreign exchange rates - pricing approach ==>

Foreign Exchange Rate

Foreign Exchange Rate-what is Foreign Exchange Rate?

Foreign exchange rate (Foreign Exchange Rate) is converted into a country's currency to another countryMoneyThe ratio of parity orPrice. It can be said, are expressed in domestic currency to foreign currency "price." Foreign Exchange Trading generally concentrated in commercial banksFinancial Institutions. Of their foreign exchange trading is aimed at the pursuit of profit, is cheap buying expensive goods to sell, bid-ask spread earn their buying foreign exchange when the exchange rate based onBuying rate, Also known as purchase price; sell foreign exchange when the exchange rate based on knownSelling rate, Also known as selling price. In direct price law, the buying rate for banks to buy one unit of foreign currency to pay for the number of selling exchange rate isBanksSell a unit of foreign currency received by the number of the local currency.Middle rateIs the buying rate and selling rate of the central parity, that is buying rate selling rate 10 1 / 2 = intermediate exchange rate applicable to the sale of foreign exchange among banks, which means that they do not earn foreign exchange transactions between theProfit.
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Foreign exchange rates - related knowledge

1, analysis There are several ways the exchange rate?

MoneyAnalysis of the exchange rate, there are two main methods: basic analysis and technical analysis. Basic analysis is the basic factors affecting exchange rate analysis, the basic factors include the level of national economic development and status in the world, regional and national political situation, the market anticipated. Technical analysis is the use ofPsychology,StatisticsDisciplines, such as research methods and means, through the study of past exchange rates, predict the future exchange rate movements. Analysis of the exchange rate-based

2, in today's world to study the classical theory of exchange rate changes what?
There are three:United KingdomScholarsXun GeTheSaid the international lending,SwedenEconomistKasselThePurchasing power parity, Well-known British economist,CairnsTheInterest Rate Parity. Among them, the interest rate parity and purchasing power parity, said the greatest impact on the market.

3, learn to explain what interest rate parity?

Answer: by the British economist John Maynard Keynes in the1923Interest rate parity theory put forward to explain the level of interest rates and exchange rate relationships. In short, what kind of currency with high interest rates investors are willing to buy what kind of money, and thus will lead to the currency exchange rate. Interest rate parity theory breaks through the traditional balance of payments and the scope of price levels, from the perspective of capital flows changes in exchange rates, laying the foundation of modern exchange rate theories.

4, What is purchasing power parity theory?

A: The purchasing power parity theory of exchange rates in the West as a doctrine. Relative price of two currencies, the domestic purchasing power of money depends on the contrast between the two countries relations. If, a hamburger sold in the United Kingdom worth aBritish Pound SterlingSameHamburg1.70 U.S. dollars sold in the United States. We say that an exchange rate of £ 1 for 1.70 U.S. dollars.

Although the purchasing power parity theory is not perfect, but the central bank in the calculation of basic ratio between currency still plays an important role. Because according to the basis of purchasing power out between exchange rates and price comparison can be judged on the basis of current market exchange rate deviations from the minimum that is an important means to predict long-term exchange rate.

5, decided to move toward the root causes of foreign exchange rates, what is?

A: The foreign exchange rate fluctuations, although the ever-changing, and, like other commodities. In the final analysis is determined by supply and demand. In the international foreign exchange market, when a particular currency when more buyers than sellers, buyers rush to purchase, the buyer power is greater than the seller forces; seller valuable commodity, the price is bound to rise. On the contrary, when the sellers see to poor sales, competing to sell a currency, market forces prevailed sellers, then the dollar must fall.

6, the mass psychology of the expected impact on the foreign exchange market?

A: Like other commodities, a country's currency is often expected for people affected by the rise and fall of foreign exchange rates. Such human factors influence on the exchange rate, sometimes even more than economic factors and the impact was also evident. Therefore, economists, financial experts, analysts, traders and investors often rely on the international community on a daily basis what happened, to make their own comments and forecasts, to express their views on the exchange rate movements.

7, political factors do influence the foreign exchange market?

A: Yes.PoliticalFactorsEconomicFactors are inextricably linked. A country's political situation is stable, its economy, particularly in the currency exchange rate will have a significant impact. Whether it is military conflict, or political scandal, will be important in the foreign exchange market, leaving traces.

8, the central bank to intervene in the foreign exchange market?

A: Because a country's currency exchange rate tends to the country's international trade, economic growth, monetary supply and demand conditions, and even political stability have a significant impact, so when the foreign exchange market speculation that makes the country's exchange rate deviation from the normal level of , the country's central bank intervened often. The central bank in the foreign exchange market to deal with speculators in the four magic is:
1) directly in the foreign exchange market, trading in local currency or U.S. dollars or other currencies2) increase the interest rates in national currency3) to tighten the local currency credit and prevent outflow of domestic currency4) released a statement. National central banks through the above measures, making speculators on the foreign exchange market, a substantial increase in financing costs, forcing them to stop open positions, playing with toys, so that the exchange rate back to a reasonable level.

The above four methods, especiallyCentralThe short-term effectiveness of intervention in the foreign exchange market is most obvious, is often the reason for the exchange rate volatility. Personal foreign exchange trading firm offer customers must be very sensitive to this.